( 1 ) THE Income Tax Appellate Tribunal, Ahmedabad Bench "a" has referred the following question for the opinion of this Court under the Gift Tax Act,1958 (hereinafter referred to as "the Act") :"whether, on the facts and in the circumstances of the case, the assessee was rightly taxed under the Gift-tax Act, 1958 in respect of the shares of the value of Rs. 52,744. 00 given to Bhavana Nalinkant Trust ?"

( 2 ) THE applicant-assessee is an individual. The assessment year is 1980-81 and the relevant previous year ended on 31/3/1980. On 19/2/1979 the assessee created irrevocable trust with initial sum of Rs. 1,000. 00 by executing a deed of trust known as "bhavana Nalinkant Trust" (hereinafter referred to as the Trust ). On 22/2/1979 the assessee addressed a letter to the trustees of the Trust informing that she was gifting certain shares which were of her individual ownership. Along with the said letter the transfer forms duly completed and signed accompanied by the share certificates were also forwarded to the trustees.

( 3 ) IT appears that the market value of the shares passed on to the trustees on 22/2/1979 was Rs. 52,744. 00. The assessee filed a gift tax return on