JUDGMENT : G.T. Nanavati, J. The Income-tax Appellate Tribunal has referred the following questions to this court under section 256(1) of the Income- tax Act, 1961 : "(1) Whether, on the facts and in the circumstances of the case, even if gift-tax is levied on the difference between the alleged fair market value and the actual sale price, still, in law, capital gains tax also can be levied on the said amount ? (2) Whether, on the facts and in the circumstances of the case, the provisions of section 52(2) of the Income-tax Act could be applied only if the condition as to existence of object of avoidance or reduction of assessee's liability under section 45 to capital gains was satisfied ? (3) Whether, on the facts and in the circumstances of the case, for the purpose of section 52(1) the existence of the assessee's object of avoidance or reduction of his liability under section 45 could not be held established except in a case where the receipt by the assessee of a consideration over and above the one declared by him had been proved ? (4) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in entertaining the miscellaneous application of the assessee and holding that the provisions of section 52(1) or 52(2) of the Act had no application to the facts of the case ?" 2. Question No. 1 has been referred at the instance of the assessee whereas questions Nos. 2, 3 and 4 have been referred at the instance of the Revenue. We need not state the facts as in view of the decision of the Supreme Court in K.P. Varghese v. ITO [1981] 131 ITR 597, questions Nos. 2, 3 and 4 are required to be answered in the affirmative, i.e., in favour of the assessee and against the Revenue. In view of the answers to questions Nos. 2, 3 and 4, we do not think it fit to answer question No. 1. We, therefore, decline to answer that question. Reference is disposed of accordingly with no order as to costs.