S.H. Kapadia, J. - (1.) Leave granted.
(2.) This civil appeal filed by the assessee seeks to challenge judgment and order passed by the Karnataka High Court dated 1.8.2007 in Gift Tax Appeal No. 2/02. In this civil appeal we are concerned with the assessment year 1987-88.
(3.) Two questions arise for determination in this civil appeal, which are as follows: (i) Whether any "gift" arose in terms of Section 2(xii) of the Gift-tax Act, 1958 ("1958 Act") on the allotment of rights issue by the appellant company to its shareholders vide Boards Resolution dated 29.1.1986 (ii) Whether there was any element of "gift" as defined under Section 2(xii) in the appellant issuing Bonus shares in the ratio of 1:23 in April/May, 1986 Answer to Question No. 1:;