Narayana Pai, J.—This is a reference under section 26(1) of the Gift-tax Act, 1958, made by the Bombay Bench "B" of the Income Tax Appellate Tribunal, at the instance of the assessee. The assessee, since deceased, one N. B. Nerlekar, had owned several properties which were his self-acquired property. On 30th August, 1961, he executed a registered instrument of partition to which himself, his wife and five children were parties; N. B. Nerlekar himself was party No. 1. The properties were set out in two schedules "A" and "B". The "A" schedule properties he retained for himself and partitioned only "B" schedule properties among himself, his wife and children under the instrument. The opening paragraphs (II) and (III) of the deed contain the following recitals :

"(II) Properties mentioned in schedule 'A' and 'B' annexed at pages 10 and 11 to this instrument are initially the self acquisition of No. 1, i.e., Sri Narayan Balakrishna Nerlekar. The joint family had no nucleus or ancestral property with the aid of which the properties in schedule 'A' and 'B' could have been acquired by No. 1. They are in fact acquired by No. 1 from time to time by his talent, industry and exertions,