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TMI Blog1997 (11) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... her marriage would amount to 'gift on the occasion of the marriage' and, accordingly, the assessee would be entitled to exemption under section 5(1)(vii) of the Gift-tax Act, 1958? 2. Whether the Appellate Tribunal was justified in holding and had valid materials to hold that there was a promise by the assessee to his daughter at the time of the latter's marriage to make a gift for her support and maintenance and the settlement made on July 3, 1978, was in fulfilment of the said promise?" The assessee is a retired inspector of police. His daughter got married on August 25, 1964, and the assessee made a gift of land worth Rs. 34,060 to his daughter and claimed exemption during the course of the assessment proceedings for the year 1979-8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relative, subject to a maximum of Rs. 10,000 in value in respect of the marriage of each such relative." The expression, "on the occasion of the marriage of the relative" came up for consideration before this court in CGT v. Dr. Mrs. Neelambal Ramaswamy [1987] 164 ITR 369 and this court after considering the decision of the Andhra Pradesh High Court in CGT v. Bandlamudi Subbaiah [1980] 123 ITR 509 and dissenting from the view taken by the Patna High Court in CGT v. M. S. Rao [1976] 102 ITR 308, held that the expression, "on the occasion of the marriage" in section 5(1)(vii) could not be given any restricted meaning, and if the gift was associated with the event of the marriage or if the reason for the gift or the immediate cause thereo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee would be entitled to the exemption under section 5(1)(vii) of the Act. The Tribunal has come to the correct conclusion in holding that only on the promise made at the time of marriage of his daughter, the gift was made and we find no infirmity in the order of the Appellate Tribunal that the assessee is entitled to exemption under section 5(1)(vii) of the Act. Since there are no materials produced by the Revenue to show that the alleged earlier promise was not correct, we are of the view that the Tribunal was correct in holding that there was an earlier promise by the assessee at the time of his daughter's marriage to make a gift in favour of his daughter. In this view of the matter, we answer both the questions of law referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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