K.S. Hegde, J.—The question referred to us under section 26(1) of the Gift-tax Act (hereinafter referred to as the "Act") is "whether, on the facts and in the circumstances of the case, could the assessee be said to have gifted properties to his sons which attracted tax under the Gift-tax Act".

2. The following facts have been found by the Tribunal :

(1) The properties both movable and immovable concerned in this case were the self-acquired properties of the assessee;

(2) He divided those properties between himself and his four sons in the year 1954 and delivered to each of his sons shares in his movable and immovable properties;

(3) The partition in the year 1954 was evidenced by an unregistered deed; and

(4) That in the year 1957 he executed a registered partition deed, under which the division effected in 1954 with slight modifications was affirmed.

3. It is the contention of the revenue that under the deed of 1957 the assessee gifted his properties the favour of his sons on November 10, 1957. If that contention is correct, then in view of section 3 of the Act, the gifts in question are eligible to tax.

4. The Income Tax Appellate Tribunal has come to the conclusion that