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Issues:
1. Whether there was a gift in terms of section 4(1)(c) of the Gift-tax Act for the assessment year 1978-79. 2. Whether the arrangement of properties settled amongst various co-owners should be covered by section 4(1)(c) of the Act. 3. Whether the settlement arrived at between the co-owners was bona fide. 4. Whether the requirement of registration for the memorandum of agreement was necessary. 5. Whether the Tribunal's decision was correct in rejecting the prayer for making a reference. Analysis: 1. The primary issue in this case was to determine whether there was a gift in terms of section 4(1)(c) of the Gift-tax Act for the assessment year 1978-79. The Assessing Officer and the Commissioner of Gift-tax believed there was a gift, but the Tribunal held otherwise, leading to a dispute. 2. The dispute further delved into whether the arrangement of properties settled amongst various co-owners should be covered by section 4(1)(c) of the Act. The Assessing Officer contended that the assessee surrendered his rights as a co-owner, attracting section 4(1)(c), while the assessee argued that the settlement was bona fide and not covered by the Act. 3. The crucial question arose regarding the bona fide nature of the settlement between the co-owners. The Tribunal examined various clauses of the family settlement and concluded that the assessee had genuinely abandoned his share in the properties to prevent future disputes, leading to a finding that the settlement was bona fide and genuine. 4. Another aspect discussed was whether the requirement of registration for the memorandum of agreement was necessary. The Tribunal's decision was supported by legal principles stating that registration was not mandatory for family arrangements, especially when the terms were already agreed upon and did not create or extinguish rights in immovable properties. 5. Lastly, the Tribunal's decision to reject the prayer for making a reference was analyzed. The Tribunal's conclusion was upheld, emphasizing that the arrangement was found to be bona fide, and no question of law arose from the factual findings. The judgment highlighted the legal definitions of 'bona fide' and 'family arrangement' to support the decision, ultimately dismissing the petition.
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