Home Circulars 1985 Income Tax Income Tax - 1985 Circular - 1985 This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Gifts by HUF on daughter's marriage-Whether taxable under the Gift-tax Act, 1958 - Income Tax - 419/1985Extract Gifts by HUF on daughter's marriage-Whether taxable under the Gift-tax Act, 1958 Circular No. 419 Dated 1/6/1985 In the case of CGT v. Basant Kumar Aditya Vikram Birla [1982] 137 ITR 72, the Karta of the assessee-HUF gave jewellery, cash and fridge of the value of Rs. 67, 744 to his daughter at the time of her marriage. The assessee-HUF claimed that these were marriage expenses and did not fall within the ambit of the term "gift" as defined in section 2(xii) of the Gift-tax Act, 1958. The Calcutta High Court has upheld the assessee's contention on the ground that being an unmarried daughter of the family, the daughter has a right to have the expenses of her marriage incurred out of the joint family fund. The joint family is under a legal obligation to provide for such marriage expenses. The Department has accepted, in principle, the judgment of the High Court. (Sd.) A.K. Fotedar, Under Secretary to the Government of India.
|