Aravind vs Saraf V. Commissioner of Gift Tax

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:

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 ?

Whether, on the facts and in the circumstances of the case, the Hon''ble Tribunal was right in holding that reconstitution was not affected on account of commercial expediency and the transaction is therefore, not exempt from gift tax under, s. 5(1)(xiv) of the GT Act ?

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 Hon''ble 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 ?

Counsel for the assessee submits before us that direction to the Tribunal to refer question Nos. 1 and 4 will suffice.

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.