JUDGMENT
K. Shivashankar Bhat, J.
1. The two questions referred for our answer under the provisions of the Gift-tax Act read thus :
“1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that there is no taxable gift on account of the induction of Manjunath, who was given 15 per cent. share as partner and thereby reducing the share of the assessee from 35 per cent. to 20 per cent. ?; and
2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in coming to the conclusion that it is not necessary to go into the valuation of the gift ?”
2. Both the questions are to be answered in the affirmative and against the Revenue following the decision of this court in Shah (D. C.) v. CGT . Reference in answered accordingly.