Inclusive definition of 'person' under gift-tax law extends to firms, making gifts by a firm taxable under the Act.

An inclusive definition of "person" under the Gift-tax Act, 1958 can extend to a firm where the statutory scheme shows legislative intent to treat it as a taxable unit. A firm is not a distinct legal entity under general law, but it answers the description of a body of individuals or persons, whether incorporated or not. Reading sections 3 and 21 harmoniously, the Act contemplates gift-tax liability in relation to firms and association of persons, so gifts made by a firm fall within the charge to tax.

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Issues: Whether a firm is a "person" within the meaning of the Gift-tax Act, 1958 so as to be liable to gift-tax under section 3 on a gift made by it.

Analysis: The definition of "person" in section 2(xviii) is inclusive and not exhaustive. A firm, though separately defined, is not a distinct legal entity under the general law and answers the description of a body of individuals or persons, whether incorporated or not. A harmonious reading of sections 3 and 21 also supports this construction, because section 21 contemplates tax liability in the case of a discontinued firm or association of persons; excluding firms from section 3 would render that provision ineffective. The statutory scheme thus shows that the legislature intended gifts made by firms to be chargeable to tax.

Conclusion: A firm falls within the scope of "person" under the Act and gift-tax can be levied on a gift made by it. The answer is in the affirmative and against the assessee.

Final Conclusion: The reference was answered in favour of the Revenue, confirming the assessability of gifts made by a firm under section 3 of the Act.

Ratio Decidendi: An inclusive statutory definition of "person" may extend to a firm where the scheme of the Act and related provisions show a clear legislative intent to treat the firm as a taxable unit.

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