MANAKLAL MOTILAL AGRAWAL Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) THIS is a reference by the Income-tax Appellate Tribunal, Indore, under Section 26(1) of the G.T. Act, stating the case and referring the following questions for our opinion :

(2.) ASSESSEE, Maneklal Motilal Agrawal, used to carry on business of plying buses. On August 21, 1968, he converted the proprietary business into a partnership firm in which he had 50% share. The other partner was Jawaharlal Agrawal with 25% share. Two minors, namely, Subhash Agrawal and Arvind Agrawal, had shares of 12'5% each in the profits of the partnership business. On January 15, 1971, the said firm was reconstituted as a result of which the assessee, Maneklal, retired from the firm and his wife, Smt. Sajanbai, became a partner in the said firm. The profit sharing ratio was revised as under: <FRM>JUDGEMENT_670_ITR147_1984Html1.htm</FRM>

(3.) IN second appeal, the INcome-tax Appellate Tribunal agreed with the reasoning of the Commissioner (Appeals) and affirmed his order. At the instance of the assessee, therefore, the aforestated questions have been referred for our opinion.