CHANCHALABEN S PATEL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference is made by the Tribunal at the instance of the assessee. The following two questions are referred under S. 256(1) of the IT Act, 1961, to this Court for its opinion :

(2.) ASSESSEE Chanchalben was a partner of M/s Navjivan Trimming Factory. There were only two partners. It appears that she had contributed 50% capital and had also a share of 50% in the profits and losses of the firm. On 14th Oct., 1970, she gifted 40% share out of 50% share in the firm to her brother in law Shankerlal's seven grand sons and his daughter in law Kusumben Bharatkumar. It appears that Shankerlal had four sons, viz., Pushpavadan, Ramesh, Suresh and Bharat and to each branch the assessee wanted to give 10% share. Therefore, by the gift deed of that date, she gifted her 40% share in their favour as under :

(3.) THE appeal preferred by the assessee to the AAC was dismissed as the AAC was also of the same view. It may be stated that the assessee died after the said appeal was filed and thereafter the executor of her will, viz., Shankerbhai Kashibhai Patel was brought on record of the appeal.