IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 2ND JULY 2008 / 11TH ASHADHA 1930 ITR.No. 59 of 2000() -------------------- (RA NO. 314/COCH/97 IN GTA NO. 20/COCH/1992 OF THE ITAT, COCHIN BENCH) APPLICANT: ----------- THE COMMISSIONER OF GIFT TAX, TRIVANDRUM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES) RESPONDENTS: ------------- SRI. K.P. VAROO CHILDREN TRUST, C/O. M/S. POPULAR AUTOMOBILES, KALASIPALAYAM, BANGALORE 560 002 BY ADV. SRI.JOSE JOSEPH THIS TAX REFERENCE HAVING BEEN FINALLY HEARD ON 02/07/2008 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- I.T.R. No. 59 OF 2000 -------------------------------------------- Dated this the 2nd day of July, 2008 JUDGMENT Ramachandran Nair,J. Heard standing counsel appearing for the applicant and counsel appearing for the respondent-assessee. The issue referred to this Court is whether there is deemed gift under Section 4(1) (c) of the Gift Tax Act in respect of shares relinquished by one of the partners in favour of others of the dissolved firm. It is seen that the Tribunal has decided the matter based on the decision of this Court which was later confirmed by the Supreme Court in the decision in COMMR. OF GIFT TAX V. T.N. LOUIZ, 245 I.T.R. 831. Counsel for the assessee brought to our notice another decision of the Supreme Court which is directly on the point and in favour of the assessee. It is reported in JAGATRAM AHUJA V. COMMISSIONER OF GIFT TAX, 246 I.T.R. 609. Even though counsel for the revenue referred to the decision of the Supreme Court in SUNIL SIDDHARTH BHAI V. CIT, 156 I.T.R. 509, 519, we 2 do not think any interference with the Tribunal's order is warranted because their decision is consistent with law declared by the Supreme Court in the above two decisions. Consequently we dispose of the reference application by answering the question in favour of the assessee and against the revenue. A copy of this judgment under the seal of the High Court and signature of the Registrar General shall be forwarded to the Income tax Appellate Tribunal, Cochin Bench, Cochin. (C.N.RAMACHANDRAN NAIR) Judge. (V. K. MOHANAN) Judge. kk 3