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Section 5(1)(viii) of the Gift-tax Act, 1958 - Exemptions - Gift from one spouse to another - Assessees, being members of bigger HUF, withdrew equal amounts from out of HUF's funds and gifted them to their respective wives - Whether said withdrawals by assessee-coparceners from HUF's funds amounted to partial partition and consequently amounts involved became individual assets, disentitling assessees from relief under section 5(1)(viii) - Held, yes Facts The assessees, a father and his two sons, who were the only coparceners of a bigger HUF consisting of themselves, their wives and other members, withdrew equal amounts from out of the HUF funds and each of them gifted the same to his respective wife. They claimed exemption from payment of gift-tax on the said amounts under section 5(1)(viii). The GTO and, on appeal, the AAC, rejected the assessees' claim. On second appeal, the Tribunal, however, allowed the exemptions claimed. On reference: Held The Tribunal had recorded a finding that since the three assessees were the only coparceners of the bigger HUF and had withdrawn identical amounts from the HUF fund on the same date, there was partial partition effected in the HUF and the three coparceners had become the individual owners of the amounts withdrawn from the HUF's funds before they gifted the same to their respective wives. It, therefore, followed that the three members in the Hindu law, would constitute minor HUFs. When once it was so held, it followed that the gifts made by them to their respective wives would not fall within the purview of section 5(7)(viii). Case referred to CGT v. B.K. Sampangirama [Tax Reference Case No. 25 (Kar.) of 1979, dated 6-8-1985]. K. Srinivasan and H. Raghavendra Rao for the Applicant. ORDER Puttaswamy, J. -As the questions that arise for determination in these cases are common, we propose to dispose of them by a common order. 2. In each of these references made under section 26(1) of the Gift-tax Act, 1958 ('the Act'), the Tribunal, Bangalore Bench, at the instance of the revenue, has referred the following questions of law for the opinion of this Court: "1. Whether, on the facts and in the circumstances of the case, it…

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