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TMI Blog2002 (9) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... is not exigible to tax under the Act, the question of valuation was not considered by the Tribunal. Now that this question is answered against the assessee, it is necessary to direct the Tribunal to consider the question of valuation. - - - - - Dated:- 27-9-2002 - Judge(s) : G. SIVARAJAN., C. N. RAMACHANDRAN NAIR. JUDGMENT The judgment of the court was delivered by G. SIVARAJAN J.-The following questions are referred under section 26(1) of the Gift-tax Act, 1958, for decision at the instance of the Revenue: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law and fact in finding that property gifted in this case cannot be viewed as a gift, within the meaning of the Gift-tax Act? 2. Whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gift in question is completely exempted from gift-tax. The appellate authority took the stand that the said decision was rendered in the context of the provisions of the Hindu law and that the said decision has no application in the case of a gift by a Christian father. The appellate authority also did not accept the contention regarding the value of the gifted property. The assessee filed second appeal before the Income-tax Appellate Tribunal, Cochin Bench, and contended that the gift deed was executed in connection with the marriage of his daughter, that it was specifically stated in the gift deed that the marriage was fixed to be solemnised on November 5, 1987, and that the property was gifted for the maintenance and future security ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... father to maintain his daughter obviously ceases when he has given her away in marriage. Standing counsel c accordingly submitted that the gift in question is exigible to tax under the Act and the Tribunal was not justified in holding to the contrary. Shri P.B. Sahasranaman, learned counsel appearing for the respondent-assessee, submits that there is a custom in the community of the Marthoma Syrian Christian to give properties to the daughter at the time of marriage and 0 that the assessee had proved the said custom by producing a certificate from the Carmal Marthoma Church. He further relied on the decision of this court in Scariah Varghese v. Marykutty [1991] 2 KLT 71; [1991] 2 KLJ 26 mentioned above. Counsel also submits that if for an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ift-tax Officer assessed the gift-tax. The assessee contended before the appellate authority that no gift of property was made by her voluntarily coming within the meaning of section 2(xii) of the Act but the properties were gifted by her to her daughter to discharge a moral, if not a legal obligation to give her daughter in marriage and to provide for her comfortable living after marriage. The assessee also relied on the custom in her particular community. The Tribunal accepted the said contention. However, this court held that the gift deed executed by the assessee in favour of her daughter to secure her future after marriage was not due to the legal obligation enjoyed by the assessee by virtue of section 20 of the Hindu Adoptions and Mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his daughter obviously ceases when he has given her away in marriage and once the marriage takes place, the obligation to maintain her is that of her husband as is clear from the said decision. It was also observed that this court in CGT v. Smt. B. Indira Devi [1999] 238 ITR 846 held that the obligation of the Hindu father also ceases when the daughter is given in marriage and a gift made to her on marriage was exigible to tax under the Act. The Division Bench also observed that the decision of the learned single judge in Scariah Varghese v. Marykutty [1991] 2 KLT 71 cannot be followed in the light of the clear pronouncement on the question by the Full Bench in the decision in CIT v. P.M. Paily Pillai [1972] 86 ITR 516 (Ker). The Divisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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