1988 (7) TMI 97

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..... the assessment years 1980-81 and 1981-82. The cross objections of the assessee are in support of the order of the Ld. AAC. 2. The common ground raised in these appeals is in respect of deduction of Rs. 10,000 under section 5(1)(vii) of the GT Act, 1957 (the Act). The assessee-HUF in these two assessment years made gift of gold ornaments and silver articles to eldest and second daughters-in-law Sm .....

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..... UF the daughters-in-law had to be dependent on the assessee for support and maintenance. This is widely known fact in the joint Hindu families and not to be disputed. He, therefore, allowed the claim of the assessee under section 5(1)(vii) of the Act. 3. The ld. departmental representative submitted that the Ld. AAC should not have treated daughters-in-law as dependent relatives of the assessee-H .....

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..... we do not mean "on the date of his marriage", with implication that the coincidence in time was designed and not accidental. The Supreme court in the case of Coffee Board v. Joint CTO AIR 1971 SC 870 opined that the term 'occasion' attempts of two meanings-"to cause or to be immediate cause." 5. The next condition is to be satisfied for exemption is that donee must be dependent. There is no defin .....

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..... nce. Whereas, in the Expenditure-tax Act section 2(g) defines 'dependent' who is an individual, spouse or minor child and any person wholly and mainly dependent on the assessee for support and maintenance. The condition, therefore, that the donee should be wholly and mainly dependent on the donor is not a must in the case of Gift-tax for exemption u/s. 5(1)(vii) of the Act. 8. The next point is w .....

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..... rt and maintenance." The above circular clearly shows that the CBDT had no objection to treat male or female dependent as relative of an HUF. 9. In the above circumstances, we hold that the gift to the extent of Rs. 10,000 in this case is allowed as deduction. 10. In the result, the appeals of the department are dismissed while the cross objections supporting the order of the Ld. AAC have becom .....

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