9911796707
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Issues:
1. Whether the Tribunal was justified in holding no gift to the major son? 2. Whether the Tribunal was justified in setting aside the order regarding gift to minor sons? Analysis: The case involved a reference application under section 26(3) of the Gift-tax Act, concerning the conversion of a personal business into a partnership by the assessee, involving major and minor sons. The Gift-tax Officer initiated proceedings, considering the conversion as a gift under the Act. The Tribunal found that the major son's inclusion was for business expansion and not a gratuitous transfer, thus no gift. However, the position of minor sons was different as they did not contribute capital or services initially. The Tribunal remanded the case to decide on the alleged relinquishment of 60% share to the minor sons, emphasizing the absence of a transfer of assets to them. The Commissioner of Gift-tax sought a reference to the High Court, which was rejected by the Tribunal, leading to the present application. Upon review, the High Court noted the Tribunal's detailed analysis, emphasizing the consideration involved in the major son's inclusion, aligning with legal precedents. The Court agreed that no gift existed concerning the major son. Regarding the minor sons, the Court concurred with the Tribunal's finding of no transfer of assets due to their lack of initial contribution, supporting the remand for further assessment. The Court dismissed the application, finding no legal issue arising from the Tribunal's decision. In conclusion, the High Court upheld the Tribunal's decision, affirming the absence of a gift to the major son and supporting the remand for assessment of the alleged relinquishment to the minor sons. The Court found no legal question warranting intervention, leading to the dismissal of the application.
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