Gender-neutral interpretation of Gift-tax exemption extends "person" to female donor in life insurance policy gifts.

The expression "person" in section 5(1)(ix) of the Gift-tax Act was construed to include a female donor, so the exemption was available where a gift of a life insurance policy was made to a dependent minor son. The proviso referring to "his wife" was treated as limiting the donee category, not as restricting the donor to a male person. A gender-neutral reading was supported by section 3(42) of the General Clauses Act unless the context required otherwise, and the contrary construction was rejected because it would create an unjustified sex-based classification and constitutional difficulty under Article 15. The assessee therefore qualified for the exemption.

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Issues: Whether the expression "person" in section 5(1)(ix) of the Gift-tax Act includes a female donor so as to entitle her to exemption in respect of a gift of a life insurance policy made to a dependent minor son.

Analysis: The exemption provision was read as applying to gifts made by any person and as carving out the exclusion only for the donee who is the wife. The context did not justify restricting the word "person" in the opening part of the provision to male donors alone. The reference to "his wife" qualified the donee category and did not control the identity of the donor. The general rule in section 3(42) of the General Clauses Act supported a gender-neutral reading unless the statutory context required otherwise. The construction urged by the Revenue would create an unjustified sex-based classification and would also raise constitutional difficulty under Article 15. The Supreme Court decision relied on by the Revenue was distinguished as turning on different statutory language and context.

Conclusion: The word "person" in section 5(1)(ix) includes a female donor, and the assessee was entitled to the exemption. The answer was in favour of the assessee and against the Revenue.

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