Gift-tax reference refused where the Tribunal declined to state a case on valuation difference as taxable gift.

A reference under the Gift-tax Act was sought on whether the difference between book value and fair market value of transferred assets could be taxed as a gift. The Tribunal had refused to state a case on the proposed question of law, and the High Court found no basis to disturb that refusal. The applicant was therefore not entitled to have the Tribunal called upon to make the reference, and the request was rejected.

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Issues: Whether the applicant was entitled to have the Tribunal called upon to state a case and refer the proposed question of law under the Gift-tax Act.

Analysis: The application sought a reference on the question whether the difference between the book value and the fair market value of the transferred assets could be taxed as a gift. The Tribunal had declined the prayer for reference, giving reasons for its view, and the Court found no ground to interfere with that conclusion.

Conclusion: The applicant was not entitled to the reference sought, and the request to call upon the Tribunal to make a reference was rejected.

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