COMMISSIONER OF WEALTH TAX Vs. MANILAL C DESAI

JUDGEMENT

(1.) THIS is a reference made by the Income-tax Appellate Tribunal under the W.T. Act on the following questions :

(2.) WHETHER the Tribunal, on the facts and in the circumstances of the case, was right in upholding the deletion of the amount of gift of Rs. 50,000 together with its accretions for each of the two years ? "

(3.) THE Appellate Tribunal in regard to the question of gift made by the wife in favour of her two grandsons held that the assessee had signed as one of the attesting witnesses to the gift deed dated June 27, 1958, though the wife of the assessee was only a benamidar in respect of the amounts standing in her name ; the assessee having authorized her to make a gift, it may be said that the assessee himself had made the gifts. Thus, the amount of Rs. 50,000 would, therefore, be excluded from the net wealth of the assessee along with interest accrued thereon. Aggrieved by this decision, the CWT sought a reference and at his instance the present reference has been made.