1979 (8) TMI 65

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.... following 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 o....

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....us, the 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' includ....

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.... the 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, 1....