COMMISSIONER OF INCOME TAX Vs. HARKESHDAS

JUDGEMENT

(1.) THE Tribunal, Nagpur Bench, Nagpur, has referred the following question of law for the opinion of this court, on an application under S. 256(1) of the IT. Act, 1961, made by the Revenue, as arising out of order dt. 15th Oct., 1987, of the Tribunal in I. T. A. No. 599/Nag of 1984 :

(2.) THE assessee is an individual, who was assessee for the asst. year 1978 79. On 22nd Nov., 1969, the assessee gifted a sum of Rs. 72,000 to his wife, Smt. Ramkalidevi, who on 25th Aug., 1974, invested the amount in the firm of Satyanarayana Ashokkumar. Later, a sum of Rs. 45,000 was withdrawn by her from the said firm and invested in the firm of Santosh Rice and Dal Mills, of which he became a partner having a 20 per cent. share.

(3.) WE have heard learned counsel for the parties and perused the record. The relevant provisions of S. 64(1) of the Act, during the period in question, read as under :