ADDL COMMISSIONER OF INCOME TAX Vs. LAXMI NIGAM

JUDGEMENT

(1.) At the instance of the Revenue, the Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal) had referred u/s. 256 of the Income Tax Act 1961, (hereinafter referred to as the Act), the following question of law :

(2.) At the outset Shri Ravi Dhavan, learned counsel for the assessee, submitted that the point on which the learned Judges of the Division Bench differed, was whether or not the transfer of a half portion of the house Kiran Kunj by the assessee, Smt. Laxmi Nigam, in favour of her minor children was supported by adequate consideration, that adequate of consideration is purely a question of fact and that since the Tribunal which is the final fact finding authority had held that there was adequate consideration for such transfer, no question of law survives for consideration in this reference.

(3.) On the other hand, the learned Senior Standing Counsel submitted that the learned Judges of the Division Bench have expressly stated that as there was divergence of opinion between them on the question referred to this Court, that question had to go before one or more of the other judges of this Court. He maintained that the entire question referred to this Court by the Tribunal and not merely the question of adequacy of consideration for the transfer by the assessee, has to be considered by me.