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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 ..... ly to his wife of a portion of the property belonging to the family is a gift by a person to his spouse within the meaning of section 5(1)(viii) of the Gift-tax Act ?" The facts are simple. The assessee is a Hindu undivided family and Shri Hari Chand is its karta. The assessment year in question 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the following terms : "2. (ii) 'assessee' means a person by whom gift-tax or any other sum of money is payable under this Act and includes-- (a) every person in respect of whom any proceeding under this Act has been taken for the determination of gift-tax payable by him or by any other person 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 exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the form of National Defence Gold Bonds, 1980, not exceeding the value of such bonds for an aggregate weight of five kilogrammes of gold in any previous year : Provided that the exemption conferred by this clause shall be available only to a person who has initially subscribed to the said bonds ; (iv) to the 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 proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isfaction of the Gift-tax Officer as being reasonable having regard to the circumstances of the case ; (xiii) being an employer, to any employee by way of bonus, gratuity or pension or to the dependants of a deceased employee, to the extent to which the payment of such bonus, gratuity or pension is proved to the satisfaction 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his section,- (a) an individual shall be deemed to be ordinarily resident in the territories to which this Act extends during the previous year in which the gift is made if during that year he is regarded as a resident but not as not ordinarily resident within the meaning of section 6 of the Income-tax Act, subject to the modification 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 ; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is assessed as such. But the fact remains that out of the funds of the Hindu undivided family, he made a gift of Rs. 49,000 to his wife. This is clear from the statement of the case and also from the order of the Tribunal. It is significant that before the Tribunal it was not urged by the department that the gift was not made by Hari Chand as Hari 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 vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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