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TMI Blog1992 (3) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the obligation cast on her as the mother to maintain her daughter which includes incurring of reasonable expenses in connection with the daughter's marriage and as such the value of the transferred property cannot be subjected to gift-tax. However, the Assessing Officer rejected this claim of the assessee, treated the transfer of the land made by the assessee as without consideration and consequently a gift, and, therefore, computed the value of the transferred land at Rs. 92, 100 and after allowing deduction under section 5(1)(vii) of the Gift-tax Act, subjected the balance amount to gift-tax. 3. Aggrieved by the aforementioned assessment order the assessee preferred an appeal to the Deputy Commissioner (Appeals). Before the Deputy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the assessee mother is not under a legal obligation to incur the marriage expenses of her daughter and and if she had chosen to do so, it was a voluntary act devoid of any consideration, much less adequate consideration and consequently the transfer of 3.52 acres of land by the assessee to her daughter would amount to a gift within the meaning of section 2(xii) of the Gift-tax Act and its value is, therefore, exigible to gift-tax. None appeared for the assessee. 5. We have considered the submissions of the learned departmental representative and perused the records. Section 2(xii) of the Gift-tax Act defines a gift to mean the transfer by one person to another of any existing or immovable property made voluntarily and without cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t moral or religious obligation." From the above decision of the Supreme Court it is abundantly clear that it is the imperative duty and moral obligation of a father, mother or even a guardian to give a girl in marriage to a suitable husband and that a gift made either by father or mother on the occasion of such a marriage would not amount to a gift as contemplated under section 2(xii) of the Gift-tax Act, because the discharge of a moral or a religious obligation, namely performing the daughter's marriage by incurring reasonable expenses, would constitute the consideration for the transfer. 7. What was a moral or a religious obligation of parents to perform the marriage of their daughter by incurring reasonable expenses therefor under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er will not be a gift liable to gift-tax under the Gift-tax Act. The Madras High Court in the case of CGT v. M. Radhakrishna Gade Rao [1983] 143 ITR 260 has observed as under : " These general principles of Hindu law laid down by Courts have been applied to determine questions arising under the G.T. Act. Courts have taken the view that the definition of gift under section 2(xii) of the G.T. Act as a transfer made voluntarily and without consideration in money or money's worth can hardly fit in with the socalled gifts or settlements of ancestral or joint family property in favour of unmarried daughters in Hindu families. In one sense a gift or settlement of property to the unmarried daughters may be said to be in discharge of a legal oblig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be said that the properties were given to the unmarried daughters voluntarily and without consideration in money or money's worth. Provision made for the unmarried daughters towards their maintenance and marriage is not a gift within the meaning of section 2(xii) of the G.T. Act. Nor could it be deemed to be a gift under any of the clauses of section 4." 9. While reiterating the above position the Andhra Pradesh High Court in its later decision in the case of CGT v. Bandi Subba Rao's case has laid down the following principle : " Giving property to an unmarried daughter as incident to maintenance is a legal obligation cast on the father or any person receiving the property of the father except a purchaser for valuable considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffing in section 20 of the Maintenance Act includes not only the daily necessities of providing food and clothing to the dependent daughter but also performing the daughter's marriage by incurring reasonable expenses incidental thereto in the form of presents on the occasion of the marriage. It is immaterial whether the property from which these expenses are incurred is the joint family property or the self acquired property of the father or the mother. In the absence of father the obligation to maintain the unmarried daughter falls on the mother. That it is so, is vividly brought out by the observation made by the Supreme Court in the case of Smt. Kamla Devi wherein it was explicitly laid down that it is the imperative duty and moral oblig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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