DESAl, C. J. :- The following question has been referred to this Court for its opinion by the Income-tax Appellate Tribunal, Allahabad Bench, at the instance of the Commissioner of Income Tax, U. P.

"Whether the entry made by the assessee in her books on 22-12-1953 transferring Rs. 1 lac from her account to the account of her grandson Om Nath amounted to a valid gift when the book balance on that date amounted to Rupees 15-10-0 only."

The facts as given in the statement of the case are as follows :-

The assessee derives income from property and from her share in a partnership firm Kishore Gopal Om Nath which is not a banking firm. The firm maintains its own accounts and the assessee also maintains her personal accounts. Her account books contain a capital account showing her investments and other assets in the firm and elsewhere. On 22-12-1953 her account books showed a balance of Rupees 2,50,000 and odd in her favour; only Rupees 15-10-0 were in cash with her, the rest being investments in the firm and other assets. On that date she made transfer entries in her account books crediting the sum of Rs. 1 lac in the account of Om Nath, her only grandson, and debiting her account