Reference application maintainable where gift-tax questions arose from Tribunal findings on merits and limitation

A reference application was held to be maintainable where the Revenue's proposed questions arose from the Tribunal's order and required examination under applicable gift-tax precedents. The court found the issues were not merely academic, as the Tribunal had addressed both merits and limitation, making judicial scrutiny appropriate rather than summary rejection. The reference application was therefore allowed, and the Tribunal was directed to draw up the statement of case and refer the questions for decision.

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Issues: Whether the reference application should be allowed and the questions proposed by the Revenue should be referred to the court.

Analysis: The questions raised were not merely academic, because they arose from the Tribunal's order and required consideration in the light of the applicable gift-tax decisions. The Tribunal had gone into the merits as well as limitation, and the matter was held to warrant judicial examination rather than summary rejection of the reference request.

Conclusion: The reference application was allowed and the Tribunal was directed to draw up the statement of case and refer the questions for decision.

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