TMI Blog1982 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... hether, on the facts and in the circumstances of the case, there was a valid gift on March 28, 1957, to Bai Kamala and Bai Indu so as to justify allowance of interest claimed with respect to the amounts credited to their account on the said date for the assessment years 1957-58 and 1958-59 ? " In order to appreciate the question, we must mention that this reference arises out of the income-tax a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es the donees withdrew the amounts. Consistently with this conclusion the ITO held that the interest of Rs 150, claimed for the assessment year 1957-58, could not be allowed as deduction as the relevant gift took place subsequent to this year. In the assessment for the assessment year 1958-59, the ITO held that the interest of Rs. 1,944 and Rs. 1,326, claimed in the case of Bai Kamala and Bai Indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal observed in para. 12 of its order, which is given in the statement of case in the paper books, that it appeared to the Tribunal in that case that there was a valid gift on March 28, 1957, and the document was executed before the notary public and the donees simultaneously agreed to keep the amount in deposit in the family firm's business at the annual interest of 3 per cent. The Tribunal t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . On behalf of the Revenue, before us, our attention was drawn to this decision and a reference was made to the document which had been set out at p. 777 of the said decision wherein the purpose of the gift was mentioned. This reference was answered in favour of the assessee and it was held that the Tribunal was right in its conclusion that there was a valid gift. In that context, in our opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat was not the controversy and we do not see any relevancy in examining this aspect of the matter. In view of the fact that the answer to the question is obvious in the context of the controversy, we will answer the question in the affirmative and in favour of the assessee. The Revenue shall pay the costs of this reference. SUHAS CHANDRA SEN J.-I agree. - - TaxTMI - TMITax - Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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