- (1.) THIS order will dispose of Income-tax Reference Nos. 19 to 22, 23, 24, 34 and 35, 36 and 37 of 1977 ; 16, 23, 75, 78 and 88 6f 1971 ; 31, 51, 117, 154 and 155, 168 and 169 and 171 and 172 of 1979, wherein the following questions of law have been referred to this court for determination under Section 256 (1) of the LT. Act, 1961 : " (i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the gifts made out of the HUF funds by the karta to the wives and children of his brothers were valid gifts ? (ii) Whether, on the facts and in the circumstances of the case, the gifts made by the assessee to the wives and children of his brothers and the brothers making gifts to the wife of the assessee, attract the provisions of Section 64 (1) of the Income-tax Act, 1961 ? (iii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the gifts made in the above manner were not 'cross-gifts' ? "
(2.) THE facts in this judgment are being given from Income-tax Reference Nos. 19 to 22 of 1977.
(3.) THE dispute is regarding the assessment years 1969-70 to 1972-73. The assessee family comprised of the following members :-1. Daljit Singh (married in 1958) 2. Smt. Charanjit Kaur (wife of Daljit Singh) 3. Ajaypal Singh (Son--date of birth : 23-2-1959);