1991 (3) TMI 88

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....his favour for the purpose of the Gift-tax Act ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal has erred in law in holding that Shri Subhash's agreeing to join as a working partner and his promise to work in future in the firm of M/s. D. T. Choudhari did not amount to a consideration within the meaning of section 2(xii) of the Gift-tax Act, 1958 ? 3. If the answer to question No. 1 is in the affirmative, whether, on the facts and in the circumstances of the case, the gift is exempt under section 5 (i) (xiv) of the Gift-tax Act, 1958 ? " Briefly stated, the relevant facts are that up to the commencement of the previous year relevant for the assessment year 1969-70, there were two partners in the assessee-firm....

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....ift by the father to the son in the facts and the circumstances of the case, and assuming there was a gift, the gift was exempt under section 5(1)(xiv). Reliance in this behalf was placed on the Supreme Court decision in the case of CGT v. P. Gheevarghese, Travancore Timbers and Products [1972] 83 ITR 403. For the reasons given in the impugned order, the Tribunal held that the Supreme Court decision was not applicable and that the departmental authorities had rightly treated the assessee's giving up his 4 annas share in the partnership as a gift to his son. Shri Inamdar, learned counsel for the assessee, and Shri Deodhar, learned counsel for the Revenue, have been heard at length. They have referred to and relied upon a number of decisions....