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TMI Blog1988 (3) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 1978-79 the assessee claimed that as a father he is under an obligation to get his daughter married, that he belongs to Nagarthar community and according to the custom of this community, presents are made to the daughter at the time of marriage and consequently the entire amount presented to the daughter is exempt from gift-tax. However, the Gift-tax Officer gave exemption of Rs. 10,000 and Rs. 5,000 under section 5(1) and 5(2) respectively and treated the balance amount of Rs. 1,52,256 as gift and subjected the same to gift-tax. 3. Aggrieved, the assessee preferred an appeal to the Appellate Asstt. Commissioner. Before the AAC it was submitted by the authorised representative of the assessee that it was the imperative duty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the assessee belongs to Nagarthar community, that in accordance with the custom and tradition of this community, gold ornaments, silverware and cash are presented to the daughter on the occasion of her marriage. As this present was made in pursuance of an obligation imposed on the father and also in accordance with the custom prevailing in that community, it is contended that the Gift-tax Officer was not justified in treating this transaction as a gift and subjecting the same to gift-tax. In support of this, reliance was placed on the following decisions : (i) Ch. Chandrasekhara Reddy's case (ii) M. Radhakrishna Gade Rao's case (iii) CGT v. Basant Kumar Aditya Vikram Birla [1982] 137 ITR 72 (Cal.), and (iv) CGT v. Bandlamudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. In Basant Kumar Aditya Vikram Birla's case, the Calcutta High Court has, inter alia, held that the legal as well as the moral obligation under the Hindu law of a HUF to incur expenses on the occasion of the marriage of an unmarried daughter is recognised by Courts. A daughter has a right, as long as the family remained joint and had properties to have her marriage expenses met out of the family funds. Hence, the legitimate marriage expenses of the daughter will have to be met out of the funds of the joint family and the amount so spent cannot be described as a transfer or gift in terms of sec. 2(xii) of the Gift-tax Act. In Radhakrishna Gade Rao's case, the Madras High Court has observed as under : "... Courts have taken the view that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oubt. Once under a partition deed of a family settlement or a gift or other instrument certain properties are set apart for the maintenance and marriage of the unmarried daughters, then the rights of the unmarried daughters and the corresponding obligations of the family gain a coherent and concrete form. They immediately attach to the property thus allotted under the instrument. Since the property is given to the unmarried daughter in recognition of her right, in discharge of the obligation of the family, by no stretch of imagination it could be treated as a gift. " 8. From the above decisions it is seen that it is the legal obligation of a Hindu father to get his daughter married and for this purpose if he transfers a reasonable portion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rriage' are used to indicate the necessity for inclusion in the expenses payable for the marriage of an unmarried daughter not only the actual expenses of the marriage but also the expenses incidental to the marriage, viz., presents at the marriage and other necessary expenses that have to be customarily incurred both before and after the actual marriage. In Chandrasekhara Reddy's case, the Andhra Pradesh High Court had an occasion to consider a similar question. In that case, Hindu father had transferred a portion of his property to his daughter in consideration of her marriage. In this context, the question that arose was whether the transfer of property is without consideration and if so it amounts to a gift. The High Court after follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y at the time of the marriage or subsequently in the discharge of that legal obligation, is not, thereby, a voluntary gift made by the father but is in compliance with his legal obligation. Any instrument executed by the father in discharge of that legal obligation or any settlement of a reasonable portion of the property in fulfilment of the existing legal claims of a married or unmarried daughter is not without consideration of money or money's worth as contemplated under the Act nor can it be said to be a voluntary one. " 10. From the above discussion, it is seen that a Hindu father is under a legal obligation to maintain his unmarried daughter. Maintenance includes, not only providing the daughter with the day to day expenses, but als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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