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TMI Blog1984 (1) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... eb, 1977 and 12th Feb, 1977 in the form of gold jewellery and cash is exempt from tax as the same was given in consideration for marriage having taken place at that time. In support of this the assessee relied on the decision of the Andhra Pradesh High Court in the case of CGT vs. Chandrasekhara Reddy 1977 CTR (AP) 31 : (1976) 105 ITR 849 (AP) which followed the general principles enunciated by the Supreme Court in the case of Kamala Devi vs. Bachulal Gupta AIR 1957 SC 434. But however, the GTO came to the conclusion that in view of the judgement of the Andhra Pradesh High Court in 1977 CTR (AP) 31 : (1976) 105 ITR 849 (AP) the assessee failed to establish that giving of such a large amount of Rs.71,000 to his daughter on the occasion of her marriage was to discharge his moral obligation as father as it was in accordance with the practice and usual custom prevailing in his family or in his community as such. He has also noted that the assessee has not given such large gifts at the time of marriage of his other daughter. Under such circumstances, he refused to accept the submission made by the assessee. But however, keeping in view the provisions of s. 5(1) (vii) allowed the exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was given to his daughter in consideration of marriage having taken place during the assessment year under consideration. The assessee relied upon a decision of the Andhra Pradesh High Court in the case of CGT vs. Ch. Chandrasekhara Reddy 1977 CTR (AP) 38 : (1977) 105 ITR 849 (AP). In that case it was held that a Hindu father, mother or other guardian has got legal as well as moral obligation to give his or her daughter in marriage to a suitable husband and he or she is entitled to set apart a portion of the family property for the purpose of her marriage. Therefore, when general provisions of Hindu Law and Hindu Adoptions and Maintenance Act, 1956 are taken into consideration, the father is said to be under moral obligation to give some property on the occasion of his daughter s marriage. It was, therefore, held that if the conveyance is made by the father to discharge his obligation to provide for maintenance of the daughter in the shape of reasonable expenses incidental to marriage, it amounts to discharge of his legal obligation and consequently it is not liable for gift-tax. The High Court further observed that whether a certain provision of property made by the father to his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of the properties gifted, the gifts were of a reasonable portion of the joint family properties and hence were valid. 11. Our attention was also drawn to another decision of the Andhra Pradesh High Court in R.C. No. 39 of 1977 in the case of CGT, A.P.-II Hyderabad vs. P. Varalaxmi (judgment dt. 1st April 1981). In that case also between 4th May, 1970 and 17th May, 1970 Smt. B. Varalaxmi, the assessee made a gift aggregating to Rs. 50,000 in favour of her eldest daughter in lieu of her maintenance and expenses for the marriage which took place on 17th May, 1970. Under these circumstances the Andhra Pradesh High Court held that inasmuch as the amount paid to the daughter was not by way of gift but only in lieu of maintenance and marriage expenses, the said amount is not exigible to gift-tax under the GT Act. The assessee also brought to our notice the Tribunal s decision to this effect in the case of GTO, P. Ward. Vijayawada vs. Smt. P. Varalakshmi in GTA Nos. 9 10/Hyd/1982 for the asst. yrs. 1976-77 and 1980-81 dt. 27th December, 1982. 12. Thus it is clear that an obligation is cast upon a Hindu to maintain his unmarried daughter and the obligation to maintain is per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see or community to which the assessee belongs is concerned. Even in the case of CGT, A.P.-I vs. Bandlamudi Subbaiah (1979) 8 CTR (AP) 91 : (1980) 123 ITR 509 (AP), the Andhra Pradesh High Court was of the view that it is not unoften that an HUF announced a gift of certain property generally land in an agriculture State like Andhra Pradesh on the occasion of the marriage of the daughter. The gift deed or settlement deed might not have been executed simultaneously with the marriage or the announcement. Later when the family itself splits up on account of partition, what has been agreed upon or announced would be reduced to writing in the partition deed. If there was an arrangement on the occasion of the marriage of the daughter to give her property certainly it would come within the scope of cl. (vii) of s. 5 (i) of the G.T. 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 deed or gift deed. Thus in the case of B. Subbaiah the gift involved was of immovable properties like land, but in the present case the gift given on the occasion of the marriage consisted of movable properties like gold jewellery, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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