M. S. MENON, C.J. :- This is a reference by the Central Board of Direct Taxes, New Delhi, under sub-section (1) of Section 64 of the Estate Duty Act, 1953, as it stood prior to its amendment by the Estate Duty (Amendment) Act, 1958. The question referred reads as follows :

"Whether on the facts and in the circumstances of the case, the amount of Rs. 2,25,000/-was correctly included in the estate of the deceased as property passing or deemed to pass on his death?"

2. One Amir Mohideen Rowther died on the 24th March 1957. It is with his estate that we are concerned in this reference.

3. Amir Mohideen Rowther was a member of a partnership consisting of himself and his three sons till his retirement from that partnership on the 25th November 1956. On the 31st December 1954 a sum of Rupees 2,25,000/- was debited in his account with the partnership and a sum of Rs. 75,000/- each was credited in the accounts with the partnership of his three sons; Mohamed Kasim, Sultan Mohammed and Abdul Razack.

4. The question for determination is whether there was a valid gift of the sum of Rs. 2,25,000/- by Amir Mohideen Rowther in equal shares to his three sons on the 31st December 1954. If ther