( 1 ) ON or about August 8, 1957 the respondent made a gift of 250 ordinary shares of the face value of Rs. 100/- each in R. Mcdill and Co. (Private) Ltd. (hereafter referred to as the K. M. Company) and 100 ordinary shares of the face value of Rs. 100/- each in Misrilal Dharamchand (Private) Ltd. (hereafter referred to as the M. D. Company) to his daughter. On or about July 28, 1959 he submitted a voluntary return of the gift to the Gift Tax Officer valuing the shares at their face value of Rs. 35,000/ -. By his order dated February 24, 1960, the Gift Tax Officer rejected their valuation and acting under Section 15 (3) of the Gift Tax Act 1958 determined the total value of the shares to be Rs. 2,68,503/- and the gift tax to be Rs. 21020. 36. On April 19, 1960, the respondent was served with the notice of demand under Section 31 of the Act, On May 19, 1960 he obtained a rule calling upon the Gift Tax Officer and the other appellants to show cause why the order of assessment and the notice of demand should not be quashed and set aside by a writ in the nature of certiorari, and, why a writ in the nature of mandamus should not be issued directing them not to give effect