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JUDGMENT Kailasam, J.-The question for decision referred to us in this case is: "Whether there was a gift by N.S. Getti Chettiar of Rs. 2,47,376 on which he is liable to pay gift-tax?" N.S. Getti Chettiar, the assessee, was the karta of a Hindu undivided family consisting of himself and his son, Govindaraju Chettiar, who had six sons. There was a partition of immovable properties by a registered deed executed on January 17, 1958, and of movable properties by entries in the books on April 13, 1958. On November 29, 1958, the claim of the assessee for partition was granted by the department. The total value of the joint family properties so divided was Rs. 8,51,440. Though the half share of Getti Chettiar would be Rs. 4,25,720, he took only Rs. 1,78,343, the balance being allotted to his son and grandsons. The Gift-tax Officer held that no reasons were advanced by the assessee for allotting a share far in excess of half share to the other members of the family and that, therefore, there had been a gift within the meaning of the Gift-tax Act, and assessed the tax on a sum of Rs. 2,36,377, which was the excess allotment to the other sharers. On appeal, the Appellate Assistant Commissioner held that there was no transfer of property in the case of partition when the joint enjoyment came to an end and, therefore, the transaction did not involve any gift exigible to tax. The Income-tax Appellate Tribunal agreed with the view of the Appellate Assistant Commissioner and held that no gift was made by one coparcener to another when a partition took place between the members of a Hindu undivided family. On the application of the Commissioner of Gift-tax, Madras, the Income-tax Appellate Tribunal has referred the question of law to this court for decision under section 26(1) of the Gift-tax Act. The admitted facts are that the assets of the joint family were worth Rs. 8,51,440. Though Getti Chettiar was entitled to a half share, viz., Rs. 4,25,720, he took only Rs. 1,78,343. The question is whether the excess amount of Rs. 2,36,377 allotted by Getti Chettiar to his son i$ a gift under the Gift-tax Act and as such exigible to tax. The contention of the learned counsel for the…

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