K. JAGANNATHA SHETTY, ACTG. C. J.

( 1 ) THIS is a reference under section 256 (1) of the Income-tax Act, 1961, and the Income-tax appellate Tribnal, Bangalore Bench, has referred the following question to this court : "whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that income from the property cannot be assessed in the assessee's hands under section 64 of the Income-tax Act and that the act of the assessee in releasing her life interest in the enjoyment of income from the property in question cannot be treated or deemed as a gift so as to attract the application of section 64 of the Income-tax Act ?"

( 2 ) THE assessee, Smt. A. Indiramma, received from B. N. Gupta a gift of property bearing No. 21/1, Jayachamarajendra Road, Bangalore City, under a deed of gift dated March 2, 1955. By the terms of the deed, she was entitled to enjoy the usufruct of that property during her lifetime and thereafter the property would devolve on her children in equal shares. The assessee did not want to have the usufruct of the property throughout her lifetime. She executed a release deed dated december 17, 1976, giving up her life inter

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