Law:

Section:

Section 15 of the Gift-tax Act, 1958-Assessment-Status of assessee-assessees (husband and wife), married under the portuguese civil code. Made a gift of properties as a body of individuals-Whether in view of provisions of portuguese civil code, they had to be treated as tenants-in-Common of said property rather than as joint owners and hence impugned gift had to be assessed separately and in equal shares in hands of two spouses-Held, on facts, yes-Whether impugned gift could be assessed in hands of assessees, as body of individuals-Held, on facts, no Facts The assessee, being husband and wife, were married under the Portuguese Civil Code. During the accounting year relevant for the assessment year 1964-65, they, as a body of individuals, made a gift of movable and immovable properties and claimed that the entire gift had to be separately assessed in equal shares in the hands of the two spouses since, under the Portuguese Civil Code, two spouses had each a distinct and separate share in the property of the body of individuals and in law they were co-tenants and not joint tenants thereof. The GTO, however, made a single assessment holding that the gifts were made on behalf of the communion, that is, the body of individuals, and thus a single assessment had to be made on the said body of individuals. On appeal, the AAC upheld the GTO's order. The Tribunal accepted the stand taken by the assessee and allowed the assessee's claim, holding that the assessment made on the body of individuals was bad in law. On reference: Held The gift made by the assessees could be treated as a single gift made by a body of individual only if it was found that the assesses (husband and wife) were joint tenants of the property gifted. On the other hand, if it was found that, in law, each one of them, as a tenant-in-common, had a half share in the properties which they gifted, the gift could not be treated as a gift made by a body of individuals, but the husband and the wife must be held to have made a gift only of their respective shares in the properties which they were gifted. On going through the nature and interest of the assessees in the properties gifted inn the light of the…

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