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TMI Blog2002 (4) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... and had spent Rs. 1,42,952 on jewellery given as Warri to his daughter-in-law in marriage. The above amount was treated as gift made by the assessee and liable to tax. Accordingly gift-tax assessment was made against the assessee. 3. The assessee impugned above assessment in the appeal before the DCGT(A) and contended that jewellery given as part of Warri was neither voluntary nor without consideration. Therefore, no gift was involved. In support of above contention, reliance was placed on the circular of the CBDT No. 419 dated 6-1-1985 and on decision of the Andhra Pradesh High Court in the case of CGT v. Ch. Chandrasekhara Reddy [1976] 105 ITR 849, decision of Calcutta High Court in the case of CGT v. Basant Kumar Aditya Vikram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh and Calcutta High Courts held that giving of Warri to daughter-in-law was not a gift. The Bench observed as under: "The assessee transferred jewellery to his daughter-in-law on the occasion of his son s marriage and relying on CGT v. Ch. Chandrasekhara Reddy [1976] 105 ITR 849 (AP) claimed exemption under section 5(1)( vii ) in respect of the said gift. The GTO disallowed it on the ground that the son had all independent taxable income, so it was not the obligation of the assessee-father to make a gift to the daughter-in-law and that the department had not accepted the decision on which the assessee was relying on. On appeal, the AAC confirmed the order of the GTO. On second appeal, the assessee contended that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of gift involved in spending the amount of Rs. 79,141 on the marriage of Smt. J. It is not the case of the Revenue that the whole or any part of the marriage expenses were never incurred. When expenses are really incurred towards the marriage then no part of such expenses can be termed to be not legitimate marriage expenses. Towards diamond ornaments an amount of Rs. 24,016.58 and towards silver vellels an amount of Rs. 6,802.40 were incurred. Out of the list of expenses these two items only can be said to be presents made to the bride. The expenses of Rs. 7,848.50 towards value of silk sarees, dhotis etc. cannot be termed to be presents made. In fact, they are customary expenses to be spent towards new clothes for the new couple on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s found to have spent Rs. 2 lakhs on marriage. It is quite customary in the Hindu families to spend amount on marriage of son as per their status and give Warri to the daughter-in-law. The present assessee was found to have spent Rs. 2 lakhs on marriage. Having regard to the status, the jewellery given to daughter-in-law at the time of her marriage cannot be treated to be unreasonable. It is given under customary and legal obligation prevalent in the society. There is no gift involved as there is no transfer of property without consideration. The act of giving jewellery was an involuntary act. Therefore, in line with the view taken by other Benches of the Tribunal, we uphold the order of the DCGT(A). 8. In the result, the appeal is dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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