9911796707
|
Home
Issues:
1. Whether jewellery given as part of Warri could be treated as a taxable gift under the Gift-tax Act. Analysis: The appeal by the Revenue was against the order of the DCGT(A) deleting an addition charged as a taxable gift. The Revenue authorities found that the assessee had spent a significant amount on jewellery given as Warri to his daughter-in-law during his son's marriage, treating it as a gift liable for taxation. The assessee contended that the jewellery given as part of Warri was not a voluntary gift and was not without consideration, relying on customs and legal provisions. The ld. CGT(A) accepted this claim and deleted the addition, leading to the Revenue's appeal. The key contention revolved around whether the jewellery given as part of Warri could be considered a taxable gift under the Gift-tax Act. The Revenue argued that as per the Act, gifts made at the occasion of marriage were taxable, citing specific provisions allowing exemptions for gifts made to relatives on such occasions. On the other hand, the assessee argued that the act of giving jewellery was obligatory as per Hindu customs and not voluntary, hence not constituting a taxable gift. The ITAT Ahmedabad Bench and other Benches had previously held that such customary obligations did not amount to voluntary gifts, supporting the assessee's stance. The Tribunal referred to various decisions where it was held that expenses incurred on marriage, including gifts given as part of customs and traditions, did not constitute taxable gifts. The Tribunal noted that the jewellery given by the assessee was in line with customary and legal obligations prevalent in Hindu families, and there was no transfer of property without consideration. The act of giving jewellery was deemed involuntary, upholding the order of the DCGT(A) based on precedents set by other Benches. Consequently, the appeal by the Revenue was dismissed, affirming that the jewellery given as part of Warri was not a taxable gift under the Gift-tax Act.
|
