COMMISSIONER OF GIFT TAX KERALA Vs. VALSALA AMMA

JUDGEMENT

(1.) Civil No. 1436 (NT) of 71 is by special leave arid civil No. 1237 of 1969 is by certificate. The latter appeal has become infructuous because the certificate by which it was brought is not supported by any reason. Hence, the appellant had to apply and obtainspecial leave from this court for appealing against the judgment of the high court. Appeal No. 1436 (NT) of 1971 is brought on the strength of the special leave granted by this court and that is the only appeal that remains to be considered.

(2.) The question referred to the High court that remains to be considered by this court is:

(3.) One Smt. Unniammalu Amma executed a Will dated 4/12/1959 bequeathing her properties to her two daughters Valsala Amma and rugmini Amma. After the death of Unniammalu Amma her two daughters appear to have effected a partition on 7/06/1961 of some of the properties bequeathed to them under the Will of their mother. Two items of properties which had been bequeathed to them, namely, a cinema theatre building with machinery and a building called police quarters, were not divided between them. These two ladies gifted those buildings to their brother, Sri Rajan Menon by means of a gift deed dated 8/06/1961. The question for decision is whether in respect of the said gift the assessee should be assessed as an association or as a body of individuals. or individual. The Gift Tax Officer assessed the assessee as an association. The Appellate assistant Commissioner upheld the assessment as an assessment on a body of individuals. The tribunal came to the conclusion that the assessment in question is a valid assessment and it is an assessment on an association. The high court differed from the conclusions reached by the above authorities and came to the conclusion that the assessees could only be assessed as individuals.