1995 (11) TMI 43 - HC - Income Tax

Summary

The High Court of Andhra Pradesh directed the Income-tax Appellate Tribunal to refer a question of law regarding the validity of a transaction involving the transfer of shares from a Hindu undivided family to its karta. The Tribunal had concluded that the transaction was made to reduce tax liability and applied the principle laid down in McDowell and Co. Ltd. v. CTO [1985] 154 ITR 148. The Court found that the legal inference drawn by the Tribunal was arguable and directed the Tribunal to refer the question for consideration. The income-tax case was allowed with no costs.