Dr. Anil Kumar Vs. Saraf Vs. Commissioner of Gift Tax

head note: income tax gift tax reference--question of law--gift--chargeability ratio & held: the question whether the reconstitution of firm would result into a chargeable gift is a question of law. application: not to current assessment year. dt. judg: 10-11-1998 decision: in favour of assessee gift tax act 1958 s.26(3) gift tax reference--question of law--gift--chargeabilty--reconstitution of firm ratio & held: the question as to whether on reconstitutions of the firm there was a gift of 30 per cent of the share of profit and goodwill of the firm is a referable question of law. application: not to current assessment year. dt. judg: 10-11-1998 decision: in favour of assessee gift tax act 1958 s.26(3) in the kerala high court om prakash, c.j. & j.b. koshy, j. counsel : p. balachandran, for the petitioner : p.k.r. menon & n.r.k. nair, for the respondent - dowry prohibition act, 1961 -- sections 3, 4 & 6: [mrs. manjula chellur & a.s. pacchapure, jj] offences under when once the accused are not found guilty of the offence punishable under section 304-b of i.p.c., they cannot be saddled with offence punishable under section 3 & 4 of the d.p. act as a subsequent demand was not in relation to the dowry agreed at the time of marriage. hence, no offence under section 4 of the d.p. act is made out.om prakash, c. j.by this application made under s. 26(3) of the gt act, the assessee requires us to direct the tribunal to draw up a statement of the case and refer the following questions for the opinion of this court:'(1) whether, on the facts and in the circumstances of the case, the hon'ble tribunal was right in holding that reconstitution of the firm gave rise to gift chargeable under the gt act? 2. whether, on the facts and in the circumstances of the case, the hon'bletribunal was right in holding that reconstitution was not effected on account of commercial expediency and the transaction is therefore not exempt from gift-tax under s. 5(1)(xiv) of the gt act?3. whether, on the facts and in the circumstances of the case, the hon'ble tribunal was right in law in holding that the firm saraf trading corporation has goodwill?4. whether, on the facts and circumstances of the case, the hon11e tribunal was right in holding that on reconstitution there was a gift of 30 per cent of the share of profit and accordingly 30 per cent of the goodwill of the firm is chargeable to gift-tax under the gt act?'2. counsel for the assessee submits before us that direction to the tribunal to refer question nos. 1 and 4 will suffice.3. inasmuch as, in our opinion, the above question nos. 1 and 4 are questions of law, we direct the tribunal to draw up a statement of the case and refer only question nos. 1 and 4 of the above questions for the opinion of this court.the application is allowed.