JUDGMENT

D.P. Mohapatra, J.-This appeal filed by the assessee is directed against the judgment of the Gujarat High Court on a reference made by the Appellate Tribunal under Section 26(1) of the Gift Tax Act, 1958 (hereinafter referred to as the Act ). The question which was referred for opinion reads as follows:

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the difference of Rs. 8,21,950/- on the sale of the jewellery by the assessee to its 12 wholly owned subsidiary companies was not liable to gift tax under the provisions of the Gift Tax Act, 1958."

The High Court disposed of the reference by answering the question in the negative, in favour of the Revenue and against the assessee. Hence this appeal.

2. The factual backdrop of the case relevant for the present proceeding may be stated thus:

The assessee is a private limited investment company and the assessment relates to the assessment year 1976-77. The assessee transferred jewellery to twelve private limited companies which were wholly owned subsidiary companies of the assessee and in return the twelve private limited companies transferred to the assesse