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TMI Blog1973 (9) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... on is 1966-67, the previous year being Samvat year 2023. During the assessment year, Hari Chand made a gift of Rs. 49,000 from the funds of the Hindu undivided family to his wife, Sunder Shanta, and a further gift of Rs. 4,900 to his minor daughter, Miss Bina Devi. In the gift-tax return filed by the karta of the Hindu undivided family for the year in question, exemption under section 5(1)(viii) was claimed in respect of the gift made to Smt. Sunder Shanta. This claim was negatived by the Gift-tax Officer with the following observations : " Exemption was claimed of the gift made to the wife, but the assessee's status is Hindu undivided family and a Hindu undivided family has no wife. A karta of a Hindu undivided family is not free to gift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the amount of refund due to him or such other person ; (b) every person who is deemed to be an assessee under this Act ; (c) every person who is deemed to be an assessee in default under this Act. "2. (ix) 'donor' means any person who makes a gift. "2. (xviii) 'person' includes a Hindu undivided family or a company or an association or a body of individuals or persons, whether incorporated or not." Section 5 of the Act is the exemption section in respect of certain gifts and is in the following terms : "5. (1) Gift-tax shall not be charged under this Act in respect of gifts made by any person-- (i) of immovable property situate outside the territories to which this Act extends ; (ii) of movable property situate outside the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Government or any local authority ; (v) to any institution or fund established for a charitable purpose to which the provisions of section 88 of the Income-tax Act apply ; (va) (i) to such temple, mosque, gurdwara, church or other place as has been notified by the Central Government for the purposes of sub-section (6) of section 88 of the Income-tax Act, 1961 (43 of 1961) ; or (ii) by way of settlement or trust, of property or the income from which, according to the deed of settlement, is to be used exclusively in connection with the temple, mosque, gurdwara, church or other place specified therein and notified as aforesaid ; (vi) for any charitable purpose not falling within clause (v) (a) made at any time before the 1st day of Apri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Gift-tax Officer as being reasonable having regard to the circumstances of the case and is made solely in recognition of the services rendered by the employee ; (xiv) in the course of carrying on a business, profession or vocation, to the extent, to which the gift is proved to the satisfaction of the Gift-tax Officer to have been made bona fide for the purpose of such business, profession or vocation ; (xv) to any person in charge of any such Bhoodan or Sampattidan movement as the Central Government may, by notification in the Official Gazette, specify ; (xvi) out of the sums, if any, guaranteed or assured by the Central Government as his privy purse, if the gifts are made for (a) the maintenance of any relative dependent on him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that references in that section to India shall be construed as references to the territories to which this Act extends ; (b) a, Hindu undivided family, firm or other association of persons shall be deemed to be resident in the territories to which this Act extends during any previous year unless, during that year, the control and management of its affairs was situated wholly outside the said territories ; (c) a company shall be deemed to be resident in the territories to which this Act extends during the previous year, if-- (i) it is a company formed and registered under the Companies Act, 1956 (1 of 1956), or is an existing company within the meaning of that Act ; or (ii) during that year, the control and management of that company wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Chand but as Hindu undivided family. The description of Hari Chand as karta is, therefore, beside the point. In any event, the view that the Tribunal took of the matter is fully supported by the two decisions, namely, Jana Veera Bhadrayya v. Commissioner of Gift-tax and Vadrevu Venkappa Rao v. Commissioner of Gift-tax. These decisions fully cover the present case. No decision taking a contrary view has been brought to our notice. In this view of the matter, we see no reason to depart from the view taken by the Tribunal. For the reasons recorded above, the question referred to us must be answered in the affirmative, i.e., in favour of the assessee and against the department. There will be no order as to costs. C. G. SURI J.-I agree. Qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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