Per K.S.S. Prasad Rao, Judicial Member. - This appeal is filed by the Department having been aggrieved by the order of the Learned Commissioner of Gift Tax dated 20-7-2000 for the assessment year 1991-92 in the case of the assessee. The Department has raised following issues in the Grounds of Appeal:-

"1. On the facts and the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) erred in holding that the retiring partner Miss Priti Shah’s relinquishing her capitals, to the tune of Rs. 14,45,954 in four firms, in favour of her brother Shri Shreyans J. Shah does not amount to gift under sections 2(xii) and 4 of the G.T. Act merely because she renounced the world and became a ‘sanyasin’."

2. Both parties were heard regarding the issues raised by their counsel in appeal and their legal implications. During the course of hearing, the Learned Representative of the assessee has filed xerox copy of the notice issued by the GTO under section 16 of the G.T. Act to the assessee and declaration made by Miss Priti Jaswantlal Shah on 14-1-1991 and page-183 of Hindu Law (Mulla) 15th Edition in support of the contentions of the assessee.

3. On careful considerati