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Section 64 of the Income-tax Act, 1961 - Transfer of assets - For benefit of spouse, etc., - Assessment year 1982-83 - Assessees 'O' and 'S' were partners of registered firm - With effect from 1-4-1981 'C' (daughter in law of 'O') and 'T' (daughter in law of 'S') were inducted into partnership - 'C' invested a sum of Rs. 10,000 in firm on 20-4-1981 which was received by her from 'S' on 29-3-1980 as a gift - 'T' also invested a sum of Rs. 10,000 out of gift of Rs. 15,000 received by her from 'O' on 6-3-1981 - Assessing Officer held that gifts made by 'S' and 'O' were a part of same transaction and device to by-pass provisions of section 64(1)(vi) and same were liable to be included in income of assessees - Tribunal held that instant case was a case of indirect transfer of assets or money through cross gifts and therefore, provisions of section 64(1)(vi) had rightly been applied by Assessing Officer and he had rightly clubbed share income from firm of cross donees in income of their respective doners - Whether finding recorded by Assessing Officer and Tribunal being pure finding of fact, was liable to be sustained - Held, yes CASES REFERRED TO CIT v. C.M. Kothari [1963] 49 ITR 107 (SC) [Para 3], CIT v. Keshvaji Morarji [1967] 66 ITR 142 (SC) [Para 4], CIT v. Kanchanlal Vadilal [1993] 203 ITR 218/ 70 Taxman 469 (Bom.) [Para 5] and CIT v. Mohmadmiya A. Topiwala [1994] 207 ITR 711 (Guj.) [Para 5]. Akshay Bhan for the Applicant. Rajesh Bindal for the Respondent. JUDGMENT G.S. Singhvi, J. - In compliance of order dated 25-8-1986 passed by this Court in ITC Nos. 35 and 50 of 1986, the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, 'the Tribunal') has referred the following questions of law for its opinion: "1. Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that the gifts of Rs. 10,000 made on March 29, 1980 to Smt. Chander Kala and of Rs. 15,000 to Smt. Tara Devi on March 3, 1981 were a part of the same transaction and a device to by-pass the provisions of section 64(1)(vi) of the Income-tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that…

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