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TMI Blog1983 (4) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court. The first decision is that of CGT v. Bandlamudi Subbaiah [1980] 123 ITR 509 (AP) and the second being that of the same High Court in CGT v. Ch. Chandrasekhara Reddy [1976] 105 ITR 849 (AP). 2. The IAC stated that neither of the decisions had been accepted by the revenue. According to him the legal obligation under Hindu law to provide for daughters' maintenance could not be taken as adequate consideration and further he stated [that] under the Gift-tax Act, 1958 ('the Act'), consideration had to be in money or money's worth. Where there was a transfer of property otherwise than for consideration in money or money's worth, according to the IAC, there would be a gift. He, therefore, came to the conclusion that in the present case there was a gift of Rs. 50,000. In concluding the IAC observed that the present case was covered by facts in the case of Chandrasekhara Reddy but with due respect to the High Court's decision since the same had not been accepted by the revenue and in view of the time limit for completion of the gift-tax proceedings, the assessment was being completed on the basis that the gift was taxable. He, however, went on to state that the assessee was en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly up to a maximum of Rs. 10,000 in value. He, therefore, stated that the exemption of Rs. 10,000 having already been allowed by the IAC, no further exemption could be given. The learned departmental representative also referred to the facts in the case of Bandlamudi Subbaiah and stated that the High Court in that case had drawn a distinction between the gifts to the married daughters and to unmarried daughters and the gifts to married daughters, no doubt given effect through a partition, were held to be hit by the ceiling under section 5(1)(vii). He, therefore, pleaded that the orders of the authorities below did not call for interference. 6. In reply, the learned counsel for the assessee submitted that the term 6 relative' under section 5(1)(vii) would not include a daughter whom a karta of the HUF was bound to maintain. 7. We have carefully considered the rival submissions. Section 5(1)(vii) is couched in general terms and we need not enter into any dissertation on the scope of the term 'relative' for, in our view, a daughter or a son is related to the parent by birth and is one of the closest forms of relationship known. A daughter is certainly a relative within the meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s : " . . .Therefore, in order to find out whether conveyance of land on the occasion of the daughter's marriage can be said to be incident to the marriage, it must be found whether the usual custom or practice was to convey land on the occasion of a daughter's marriage so far as this particular community of the assessee or the family of the assessee was concerned." According to the aforesaid observations of the Andhra Pradesh, High Court, which are binding on us, merely because the presentation is made on the occasion of the marriage, that by itself would not take the presentation outside the purview of expenditure on maintenance and marriage, which a Hindu father is obliged to incur. Incurring of such expenditure, if it is for maintenance and marriage of an unmarried daughter, would not be a voluntary transfer of property and, therefore, would fall outside the purview of the definition of term gift' in section 2(xii) read with section 2(xxiv). 10. A case had come up before the Calcutta High Court in the case of CGT v. Basant Kumar Aditya Vikram Birla [1982] 137 ITR 72. The decision of the Andhra Pradesh High Court in the case of Chandrasekhara Reddy was also considered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be reduced to writing in the partition deed. If really there was an arrangement on the occasion of the marriage of the daughter to give her some property, certainly it would come within the scope of clause (vii) of section 5(1) of the Gift-tax Act, even if the arrangement was reduced to writing much later either in the form of a partition deed or in the form of a settlement or gift deed. This is precisely the view taken by the Tribunal. That is why it directed the lower authorities to ascertain whether, on the occasion of the marriages of the three daughters, the lands which were sought to be given to them, were gifted to the daughters. This is essentially a question of fact. Therefore, we see no justification in calling for reference of the first question." [Emphasis supplied] The direction of the Tribunal in that case was that the authorities below should ascertain whether the lands sought to be given to the three married daughters on the occasion of marriage were gifts to the daughters. It cannot be in these circumstances stated that any amount which may be given to a daughter on the day of marriage would invariably be a gift. What has to be decided is whether what is g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show that the aggregate wealth was in excess of Rs. 2 lakhs. The transfer was only of Rs. 50,000. The IAC had given a finding that the case fell within the ratio of judgment of the Andhra Pradesh High Court in the case of Chandrasekhara Reddy. But as already stated in the case of Chandrasekhara Reddy the High Court had declined to answer the question with the result the Tribunal had to re-decide the issue with reference to the guidelines indicated by their Lordships. In the present case also we would, accordingly, set aside the orders of the authorities below and restore the matter to the assessing authority who would consider whether the payment of an amount of Rs. 50,000, having due regard to all attendant circumstances, could be considered to be by way of usual provision for marriage of a daughter in the particular community of the assessee. If the assessing authority comes to the conclusion that the amount was a usual provision for the marriage of the daughter then the amount in question will not be a gift and will be exempt from gift-tax. Otherwise an exemption will be available only to such extent of amount as would constitute a usual provision for marriage of a daughter in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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