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Jurisdiction of Gift-tax Officer to issue notices to a partnership firm under the Gift-tax Act. Analysis: The judgment revolves around the jurisdiction of the Gift-tax Officer to issue notices to a partnership firm under the Gift-tax Act. The petitioners sought a writ of mandamus to cancel the notices issued for assessment years 1973-74 and 1974-75. The argument presented was that a partnership firm is not liable to be assessed under the Gift-tax Act, and therefore, the Gift-tax Officer lacked the authority to issue the notices. The definition of "person" under the Gift-tax Act was crucial in determining whether a partnership firm falls within its scope. The petitioners contended that a partnership firm does not fit the definition of "person" under the Act, as highlighted in section 2(xviii). The court was referred to the definition of "person" in the Income-tax Act, 1961, to draw a parallel and emphasize that a partnership firm is distinct from other entities included in the definition. The argument focused on the independent identity of a partnership firm and its exclusion from the definition of "person" under the Gift-tax Act. A previous decision was cited to support the contention that a firm cannot be treated as a separate unit for assessment purposes under relevant statutes. The court noted that the respondents, representing the gift-tax authorities, acknowledged the absence of a provision including a firm as a person under the Gift-tax Act. Ultimately, the court held that the respondents lacked jurisdiction to proceed with the impugned notices against the partnership firm. The rule was made absolute, quashing the notices, but clarifying that the authorities could still proceed against the partner(s) of the firm without any limitation. The judgment did not delve into the merits of the case, focusing solely on the jurisdictional issue. No costs were awarded in the matter. This judgment underscores the importance of statutory definitions in determining the jurisdiction of tax authorities to assess entities like partnership firms under specific tax laws. The court's interpretation of the term "person" under the Gift-tax Act played a pivotal role in establishing the lack of jurisdiction in issuing notices to the partnership firm, highlighting the significance of legal definitions in tax assessments.
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