1984 (8) TMI 53

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..... -The following question has been, at the instance of the Revenue, referred to us by the Income-tax Appellate Tribunal, Cochin Bench, under s. 26(1) of the G.T. Act, 1958 " Whether, on the facts and circumstances of the case, Rs. 1 lakh contributed by the assessee's son as his share of the capital for the partnership business can be considered as consideration for the gift involved in the conv....

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....in his personal account. He held that this sum could not be taken into account in computing the amount on which tax was payable. The assessee appealed to the Tribunal against the order of the Commissioner. The Tribunal found that the sum of Rs 1,00,000 paid by the son was towards consideration for the assets transferred. The Tribunal thus accepted the contention of the assessee and set aside th....

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....O as to the existence of a gift and the liability to pay tax thereon was not challenged by the assessee. Assuming, therefore, that the transaction was in the nature of a gift, even so, as rightly, in our view, found by the Tribunal, consideration in the sum of Rs. 1,00,000 had passed from the son to the father, for the benefits conferred on the son by being admitted into the partnership. In the ci....