TMI Blog1979 (8) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... g question for the opinion of this court : " Whether, on the facts and in the circumstances of the case, and on a proper interpretation of the provisions of the Gift-tax Act, 1958, no gift- tax assessment could be made on the firm? " The facts necessary for answering the question are short: The assessee manufactures crystal sugar by the sulphuration process. Press-mud is a by-product obtaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he only question that falls for consideration is as to whether a gift made by a firm is liable to be taxed under s. 3. Section 3 makes all gifts chargeable to tax from the 1st day of April, 1958, made by a person during the previous year, at the rate specified in the Schedule to the Act. The word "person " has been defined in s. 2 (xviii) of the Act in the following terms : " 'Person' includes a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e collective name of a body of persons, who have entered into a partnership. This being so, a firm would fall within the category " body of individuals or persons whether incorporated or not " as contained in the later part of s. 2(xviii). In the case of M. M. Ipoh v. CIT [1968] 67 ITR 106, the Supreme Court interpreting the definition of the word " person " in s. 2(9) of the Indian I.T. Act, 1922 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ections 3 and 21 of the Act, it is amply clear that the legislature contemplated a tax in respect of gift made by a firm. The view to the contrary taken by the Tribunal does not appear to be correct. The question referred to us is answered in the affirmative, in favour of the department and against the assessee. The department is entitled to its costs, which is assessed at Rs. 200. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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