9911796707
TMI Blog1984 (9) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 3992, situated in Muktinutalapadu village in Ongole sub-registry, Prakasam District was orally gifted and the possession of the land was delivered to the daughter on 12th May, 1978. Subsequently, a transfer deed dt. 19th July, 1978 was executed by the mother, the assessee in favour of her daughter, the donee. The value of the land was put in the document at Rs. 16,000 and the property gifted was described as the self acquired property of the mother. The GTO while completing the assessment for asst. yr. 1979-80 under s. 15(5) of the GT Act estimated the value of the transferred property at Rs. 17,000. He gave exemption under s. 5(2) of the GT Act at Rs. 5,000. At the same time when exemption of Rs. 10,000 was claimed under s. 5(1)(vii) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended that firstly there is no gift and secondly even it is treated as gift she is entitled to the exemption under s. 5(1)(vii) of GT Act. Since the contention urged does not involve ascertaining any fresh facts we permit the assessee to take up this contention, and thus the matter stands for our consideration. We have heard Sri M.J. Swamy and Sri D. Manmohan, ld. Advocates, for the assessee and Sri P. Radhakrishna Murthy, ld. Departmental representative. On behalf of the assessee copy of the settlement deed dt. 19th July 1978 was furnished. They have also furnished our orders dt. 28th Feb., 1984 passed n GTA No. 2/Hyd/83 in the case of V. Veera Reddy, Guddibandivaripalem vs. GTO A-Ward, Tenali. The first question which falls for our consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een incurred before or during the marriage but which have not yet been paid or discharged." In CGT. A.P.-I vs. Bandlamudi subbaiah (1980) 123 ITR 509 (AP), it is held as follows as per the head note of the decision: "If there was an arrangement on the occasion of the marriage of the daughter to give her some property,. such allotment of property comes within the scopt of s. 5(1)(vii) of the GT Act, 1958. It doers not matter that the arrangement at the time of marriage was reduced to writing much later either by way of partition deed or by execution of settlement or gift deed." IT is not dispute by the Revenue that the possession of transferred land was delivered to the donee on the date of her marriage itself viz., 12th May 1978 and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h includes the reasonable expenses of her marriage and, therefore, any property moveable or immovable given to her for or at the item of marriage cannot to termed as a gift within the meaning if section 122, T.P. Act as the essential ingredients of gift conspicuous by their absence in the transaction of giving the property to the daughter by way of Pasupu Kumkuma which is both involuntary as well as for consideration Once the said transactions taken out of the ambit of s. 122 of T.P. Act, it is not all obligatory that the said document, if it is in writing, requires any registration, within the meaning of section 123, T.P. Act and under section 17 of the Registration Act. In fact, it is quite apparent that the transaction "Pasupukumkuma" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the view taken by the A.T. that the sum of Rs. 50,000 given lieu of maintenance and marriage expenses of the daughter could not be exigible to gift-tax is unsustainable. On the other hand, it is contended by Shri N. Ranganadham, the learned counsel for the assessee that this amount of Rs. 50,000 was paid to the daughter only in discharge of an obligation case on the father and subsequently on the mother to provide for the maintenance and marriage expenses of an unmarried daughter of Hindu family. This contention receives support form the decision of this Court reported in CGT vs. Bandlamudi Subbaiah, A.P.I. (1980) 123 ITR 509 (AP). On the facts and circumstances of this case the Tribunal recorded a finding of fact that the amount of Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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