Can HUF give Taxfree gift

Huf can make a gift to its any member of it huf and that gift is tax 

Unfortunately u/s 56 of Income Tax Act, while the sum received by Individual and HUF  without consideration (Gift) have been deemed taxable, the definition of Relative for the purpose of exemption has been made in relation to Individual only.

So strictly speaking there is no relative defined for HUF and the definition of 'Relative' being exhaustive, the same cannot be further stretched in respect of HUF. Hence, the sums received by HUF are not exempted under this category and neither the gift from HUF to any member be benefited by this exemption as HUF per se does not fall under the definition of Relative.

Let's hope some judicial order widens the scope of definition of Relative to those donees who pass the test of Relative definition for all members of HUF.