CGT ADDL Vs. ANNAMALAI NADAR A A

JUDGEMENT

(1.) UNDER Section 26(1) of the Gift-tax Act, the Income-tax Appellate Tribunal, Madras Bench, has referred the following questions for the opinion of this court :

(2.) THE relevant facts are as follows : THE assessee was carrying on commission business in sanna leaves and pods. He had three sons, one of whom was a major working, with him in the business for some remuneration. THE two other sons are minors. He converted the proprietary business into a partnership business by taking his major son as a partner and by admitting the minor sons to the benefits of partnership. Each of them was entitled to a 25 per cent. share in the profits. THE partnership deed came into existence on February 17, 1964, which falls within the relevant accounting period for the assessment year 1965-66.