(1) THIS appeal relates to the assessment under the Wealth-Tax Act, 1957 for the year 1964-65. The Wealth Tax Officer rejected the claim of the assessee for deleting the amount of Rs. 2 lakhs as gift. The assessee filed an appeal which was dismissed by the Appellate Assistant Commissioner. In further appeal the Appellate tribunal held that there was valid gift and the amount was liable to be excluded from the wealth of HUF. Thereafter, there was a reference to the High court under S. 27(1) of the Wealth Tax Act, 1957.

(2) THE question of law referred to the High court was whether on the facts and in the circumstances of the case the sum of Rs. 2 lakhs was rightly excluded from the computation of the assessees wealth. The High court on an analysis of the facts found that the tribunal came to the conclusion that the cash balance available with the assessee on the date of the alleged gift that is to say on 6/10/1954 was only Rs. 7,626.00, although it had assets of about Rs. 7 lakhs in the form of negotiable securities etc. The tribunal also recorded after finding that Rs. 2 lakhs was gifted only by entry in the books of account. It was found further that no interest wa