COMMISSIONER OF INCOME TAX Vs. DEVADASAN

JUDGEMENT

(1.) THE following question has been referred to this court for consideration under Section 26(1) of the Gift-tax Act, 1958, by the Appellate Tribunal, Cochin Bench :

(2.) AS we said easier, the assessee was carrying on a business in Burmah Shell agency and a business in bus service. By two agreements of partnership, both dated May 1, 1963, the assessee constituted two partnerships, one with one of his brothers and the other with all his three brothers. By one partnership the business of Burmah Shell agency was taken over. By the other partnership the business of bus and lorry service was taken over. The subject of the gift was the goodwill of the business of the assessee transferred to these partnerships. The question for consideration is whether the gift is exempted under Section 5(1)(xiv) of the Gift-tax Act.

(3.) A copy of this order shall be forwarded to the Appellate Tribunal, Cochin Bench, as required by law.