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TMI Blog1990 (5) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ng along with their husbands in the places of their respective husbands. Shri Rajagopala Iyer used to maintain accounts for the HUF. In the accounting year relevant for the assessment year 1978-79 he got his last daughter married by spending a sum of Rs. 79,141, the particulars of which are available in the accounts maintained by him. The assets of the HUF on the valuation date relevant for 1978-79 were of the value of only Rs. 2,15,429. For a family having only so much of wealth, the Gift-tax Officer thought that spending a sum of Rs. 79,141 towards the marriage expenses of the unmarried daughter in the family is quite disproportionate and cannot be taken to be the reasonable and legitimate marriage expenses. He estimated the legitimate ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and without consideration in money or money's worth and includes the transfer referred to in section 4, deemed to be a gift. In view of the definition of the gift, the Dy. Commissioner(A) held that the excess amount of Rs. 49,141 constituted gift within the meaning of sec. 2(xii) of the Gift-tax Act and hence he confirmed the Gift-tax Officer's order and dismissed the appeal filed by the assessee. Hence this second appeal. 3. In Basant Kumar Aditya Vikram Birla's case the following is what is held as per head-note of the decision :-- " The legal as well as moral obligation under the Hindu law of an HUF to incur expenses on the occasion of the marriage of an unmarried daughter is recognised by the courts. A daughter has a right, as long ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift in the strict sense of the term. The daughter had the right under the law to have her marriage expenses met. " The Calcutta High Court approvedly quoted the Andhra Pradesh High Court decision in CGT v. Ch. Chandrasekhara Reddy [1976] 105 ITR 849 where it was observed that a gift by a father or mother or other guardian in discharge of a moral obligation would not attract the provisions of the Gift-tax Act. In this connection, from the quotation extracted above, the sentence " there was no question of anybody transferring any amount really or making any gift in the strict sense of the term " is very significant. We humbly follow the Calcutta High Court decision and hold that as per the ratio of the said decision we have to hold that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 only. Hence no gift is involved in this case, even according to the standards of the revenue. Suffice it to say that according to the Calcutta High Court decision as well as the Andhra Pradesh High Court decision, which is approvedly quoted in the Calcutta High Court decision, an unmarried daughter has the right to demand the marriage expenses from out of the joint family funds. When those funds are spent by the Karta of the joint family for marriage expenses of the daughter, there is no question of any transfer involved, for a daughter is as much a member of the family as any other male member. Hence, in our view, there is no gift involved. We also hold that the lower authorities did not properly appreciate the Calcutta High Court decis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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