1982 (7) TMI 46

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.... on a case stated under s. 256(1) of the LT. Act, 1961. The questions referred to us for our determination are as follows : " (1) Whether, on the facts and in the circumstances of the case, the assessee validly gifted a sum of Rs. 51,000 to his son, Kantilal ? (2) Whether, on the facts and in the circumstances of the case, the interest relatable to the aforesaid sum of Rs. 51,000 could be in....

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....his returns for the relevant assessment years, namely, the assessment years 1965-66 to 1969-70, as, according to him, it was his son, Kantilal, who was the owner of the one-third share of the said property. The ITO, however, included the one-third share of the income of the said property in the assessee's hands in the said assessment years on the basis that it was the assessee who had purchased th....

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....or admitted to the benefits of partnership in the firm of M/s. Jayantilal Navnitlal and Company. M/s. Jayantilal Navnitlal and Company debited Rs. 51,000 to the account of Keshavji Mavji and Company and credited it to the account of Kantilal, and M/s. Keshavji Mavji and Company credited Rs. 51,000 in its books of account to the account of M/s. Jayantilal Navnitlal and Company. Interest was credite....

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...., in or about November, 1956, by making the entries as set out above. It has been held in a number of cases that there can be a valid gift effected by making entries in the books of account, if there is evidence to show that the gift was made by the donor and accepted by the donee and was acted upon by both of them. If any authority were needed in support of the said proposition, we would refer....