JUDGMENT

K. JAGANNATHA SHETTY, J.:— This appeal by special leave is against the decision of the High Court of Kerala in Income-tax Reference No. 101 / 1974 and it raises an important issue concerning the requirements of a gift made "in contemplation of death" within the meaning of Section 5(1)(xi) of Gift Tax Act, 1958 (The Act). That reference was made under Section 26(1) of the Gift Tax Act, 1958 by the Income-tax Appellate Tribunal Cochin Bench. The Tribunal referred to the High Court two questions for its opinion, out of which we are concerned only with the first question which reads:

"Whether on the facts and circumstances of the case the tribunal was right in holding that the gift of movables valued at Rs. 67,578/- is not a gift made in contemplation of death within the meaning of Section 5(1)(xi) of Gift-Tax Act, 1958?"

The facts of the case as found by the Tribunal are simple and not unusual. Abdul Karim Mohammed a businessman in Cochin executed a document styled as "settlement will" gifting certain movables to the assessee respondent in the shape of business assets valued by the Gift-Tax Officer at Rs. 67,578/ The document was executed on 24 April, 1964 and at the time of ex