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Transfer of shares as a gift under the Gift-tax Act, 1958 based on consideration of marriage and other factors. Analysis: The case involved a reference under section 26(1) of the Gift-tax Act, 1958, regarding the transfer of shares by the assessee to a lady in consideration of marriage. The assessee argued that the transfer was not solely based on the promise of marriage but also included considerations like the lady giving up her job and career, and providing maintenance to her parents. The Appellate Assistant Commissioner and the Tribunal held that the transfer constituted a gift as it was primarily in consideration of marriage, rejecting the additional considerations raised by the assessee. The key question referred to the High Court was whether the transfer of shares constituted a gift within the meaning of the Gift-tax Act, 1958. The definition of "gift" under section 2(xii) of the Act involves the transfer of property voluntarily and without consideration in money or money's worth. The assessee argued that considerations beyond marriage, like giving up a career, should be considered as money's worth. However, the Tribunal's findings, binding on the High Court, established that the transfer was solely in consideration of marriage, as per the written agreement between the parties. The High Court emphasized that a promise of marriage, while a valid consideration in law, does not qualify as consideration in money or money's worth under the Gift-tax Act. The court rejected the assessee's argument that considerations like giving up a career could be evaluated in monetary terms. Referring to relevant case law, the court concluded that the transfer of shares fell within the definition of a "gift" under the Act. The High Court upheld the Tribunal's decision, answering the question in favor of the Revenue, and declined to award costs in the case.
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