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Section 4 of the Gift-tax Act, 1958 - Deemed gift - Assessment years 1975-76 and 1976-77 - Respondent-company entered into a partnership firm with 4 others, transferred its assets and liabilities in favour of partnership firm and was entitled to 10 per cent profit therein - GTO held that in process of transfer of assets of company there was a deemed gift to extent of 90 per cent which was liable to gift-tax - On appeal, first appellate authority held that transfer of assets was supported by consideration and even if there was a deemed gift as per section 4(1), assessee was entitled to exemption under section 5(1)(xiv) - On second appeal, Tribunal confirmed order of appellate authority - Whether question as to whether there was any gift involved in transaction of entering into partnership, had to be considered by Tribunal after ascertaining basic facts with regard to assets brought in by assessee-company as well as other partners, and, therefore, matter was remitted back to Tribunal for fresh disposal in accordance with law - Held, yes CASES REFERRED TO Sunil Siddharthbhai v. CIT [1985] 156 ITR 509/23 Taxman 14W (SC) [Para 4], CGT v. Sree Narayana Chandrika Trust [2001] 248 ITR 275/ 116 Taxman 477 (Ker.) [Para 5], CGT v. Smt. C.K. Nirmala [1995] 215 ITR 156 (Ker.) (FB) [Para 6], D.C. Shah v. CGT[1982] 134 ITR 492/[1981] 6 Taxman 179 (Kar.) [Para 6], CGT v. D.C. Shah [2001] 249 ITR 518/ 117 Taxman 361 (SC) [Para 6],CGT v. H. Subramanian, Bhima Jewellers [1999] 236 ITR 143 (Ker.) [Para 8] and Salem Co-operative Central Bank Ltd. v. CIT [1993]201 ITR 697/ 68 Taxman 33 (SC) [Para 8]. P.K. Ravindranatha Menon and George K. George for the Applicant. P. Balachandran for the Respondent. JUDGMENT G. Sivarajan, J. - These two references at the instance of the revenue arise from a common order of the Income-tax Appellate Tribunal, Cochin Bench in G.T.A. Nos. 15 & 16/Coch./1987 in respect of the assessment years 1975-76 and 1976-77. I.T.R. No. 81 of 2000 arises from G.T.A No. 15/Coch./1987 for 1975-76 and ITR No. 315/1997 arises from G.T.A. 16 Coch./1987 for the assessment year 1976-77. 2. The question referred by the Tribunal pursuant to the direction issued by this…

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