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Assessment of the assessee as an association of persons. Analysis: The Supreme Court considered the case involving the assessment of the assessee as an association of persons. The dispute arose from a gift made by two daughters to their brother, which led to the question of whether the assessee should be assessed as an association, a body of individuals, or individuals. The Gift-tax Officer initially assessed the assessee as an association, but the High Court disagreed with this assessment, stating that the assessees could only be assessed as individuals. The Court analyzed the relevant provisions of the Gift-tax Act, particularly Section 2(xviii) defining "person" and Section 3 outlining the charging section. The Court emphasized that the assessee received the property as co-tenants with each having a half share, indicating a tenancy-in-common arrangement. Therefore, the Court concluded that each daughter made a gift of her share individually, not as part of an association or body of individuals. The Court highlighted that the Gift-tax Act did not alter general property rights but aimed to tax gifts made by individuals. Consequently, the High Court's decision in favor of the assessee was upheld, leading to the dismissal of Civil Appeal No. 1436 (NT)/71. Conclusion: The Supreme Court dismissed Civil Appeal No. 1436 (NT)/71, affirming the High Court's decision in favor of the assessee. Additionally, Civil Appeal No. 1237 of 1969 was dismissed as not maintainable. The Court clarified that the gift in question was made by the daughters individually as co-tenants, not as part of an association or body of individuals. The judgment emphasized the importance of assessing gifts based on the actual ownership and rights of the parties involved, in line with the provisions of the Gift-tax Act.
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