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TMI Blog2003 (3) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT The judgment of the court was delivered by G. SIVARAJAN J. -This is a reference under section 26(1) of the Gift-tax Act, 1958(for short "the Act"), at the instance of the Revenue. The following questions are referred for decision of this court: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that there is no taxable gift in this case? (2) Whether, on the facts and in the circumstances of the case, and in the light of the decision of the Kerala High Court in Indira Devi [1998] KLJ (Taxman) 352, the Tribunal is right in law in arriving at the findings and the conclusion reached in paragraphs 5 and 6 of its order? (3) Whether, on the facts and in the circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal by the Department, the Tribunal confirmed the same. Hence, this reference. Shri P.K.R. Menon, senior Central Government standing counsel appearing for the Revenue, submits that the gift in the instant case is not covered by the provisions of section 3(b) of the Adoption Act. Senior counsel, with reference to the provisions of section 3(b)(i) of the said Act, submits that it is only the expenses, which are incurred and incidental to the marriage of the daughter alone, that can be roped within the purview of the said section and that any gift given to the daughter at the time of marriage cannot be included. Learned counsel appearing for the assessee, on the other hand, submits that reasonable expenses of and incidental to marriage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quires, - (b) 'maintenance' includes- . . . (ii) in the case of an unmarried daughter, also the reasonable expenses of and incident to her marriage;" Under the provisions of section 20 read with section 3(b)(ii) of the Adoption Act a Hindu is bound during his life time to maintain his legitimate or illegitimate children, and if the Hindu father fails to maintain his legitimate or illegitimate children, they can claim maintenance from their father. Similarly, the obligation of the father to maintain a daughter, who is unmarried, extends, in so far as she is unable to maintain herself, to her marriage. Maintenance provided in section 20 also takes in reasonable expenses of and incidental to her marriage. Admittedly, the assessee gave 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arriage. In these circumstances, having regard to the facts and circumstances of the case on hand, giving of 51 sovereigns by the assessee to his daughter is a reasonable expense of the assessee contemplated under section 3(b)(ii) of the Adoption Act. In these circumstances, we are of the view that the conclusion reached by the two appellate authorities in the instant case is perfectly justified. We will at once make it clear that the reasonableness of the expenses contemplated under section 3(b)(ii) of the Adoption Act is a question of fact to be decided on the facts and circumstances of each case, and the decision in this case is not an authority for the position that in all cases where gold ornaments are given to a Hindu the entire gol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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