- (1.) This appeal is by the assessee against the judgment and order dated 25-4-1988 passed by the Division Bench of the High Court of Andhra Pradesh. It relates to the assessment year 1972-73. The Income-tax Appellate Tribunal, Hyderabad (for short the 'Tribunal') had referred the following question under S. 26(1) of the Gift Tax Act, 1958 (for short the 'Act') for the opinion of the High Court :- "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the release by the assessee who was one of the partners in the firm of 3-Aces, of his rights in the assets of the firm for a consideration of Rs. 3,00,000/- when the market value of the assets of the firm in proportion to his share was in excess thereof, did not amount to a gift within the meaning of the Gift Tax Act."
(2.) The High Court by the impugned judgment answered the said question in negative and against the assessee.
(3.) Briefly stated, the facts leading to the filing of this appeal are as follows.;