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TMI Blog1985 (11) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... e view that the gift was "not made" on the occasion of the marriage. The Appellate Assistant Commissioner also took the same view and held that the expression on the occasion of the marriage " means " at the time of the marriage " and since the gifts were made nearly 11 months after the marriage, he confirmed the disallowance of exemption. The assessee took the matter in appeal to the Tribunal. The Tribunal was of the view that the expression " on the occasion of the marriage " is capable of meaning " in relation to the occasion of the marriage ", and that the delay in making the gifts was satisfactorily explained and in that view held that the exemption to the extent of Rs. 9,000 in relation to the gift in favour of the son and to the extent of Rs. 10,000 in relation to the gift in favour of the daughter were to be sustained. Learned counsel for the Revenue strenuously contended that the expression " on the occasion of the marriage " could only mean at the time of the marriage or immediately preceding the marriage and it could not be interpreted as meaning " any time subsequent to the marriage ". Section 5(1)(vii) of the Gift-tax Act, 1958, which is the relevant provision reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mortgage must have been created " on the occasion of " and " in connection with " the acquisition of the interest in the premises which was the subject-matter of the mortgage or on the occasion of and in connection with the execution of the works for the benefit of the premises. The expression " on the occasion of " was considered as not equivalent in meaning to the phrase " on the same date ". In fact, we find that one o the meanings given for " occasion" in Chambers' Twentieth Century Dictionary is " requirement ". If we give the meaning " requirement " to the word It occasion " in the section, it may also be interpreted as saying that it is as part of the requirement of the marriage that the gift is made. Without reference to any of these citations almost on identical facts, the Andhra Pradesh High Court in CGT v. Bandlamudi Subbaiah [1980] 123 ITR 509 (AP) took the same view. In that case, in pursuance of an arrangement on the occasion of the marriage of the daughters to give them property, some allotment of property was made in the subsequent partition in favour of the three married daughters. The point was considered with reference to these gifts given to the three married d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possible to hold that the gift to the daughter was on the occasion of her marriage. As I have said above, the only basis of this finding in the judgment of the Tribunal is the assessee's promise to make a gift to his daughter. This could not be held in the eye of law to be gift to the daughter even oral gift on the occasion of her marriage. would, therefore, answer the first question in the negative, against the assessee and in favour of the Revenue and hold that, on the facts and in the circumstances of the case, section 5(1)(vii) of the Act was not applicable to the gift in question in favour of the assessee's daughter. " With great respect to the learned judges, we are unable to share this view. In fact, the observations of the Supreme Court in Guramma v. Mallappa, AIR 1964 SC 510, on the general law governing Hindu undivided families are against this view of the Patna High Court. In paragraph 18 of that judgment, the Supreme Court observed (p. 519): " The legal position may be summarised thus: The Hindu law texts conferred a right upon a daughter or a sister, as the case may be, to have a share in the family property at the time of partition. That right was lost by efflux o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26, 1971, because of certain unfortunate events that had happened in the family. The marriage took place on the 7th and 8th June, 1970. It is not denied that on July 15, 1970, the younger son of the assessee died. The Tribunal found that the cause for the delay in making the gift, if any, was also satisfactorily explained. Since the gifts were intended even at the time of the marriage and thus associated with the marriage itself, we are of the view that they will come squarely under section 5(1)(vii) of the Gift-tax Act. In fact, it is the contention of learned counsel for the assessee that the entire gift will not be one contemplated under the Gift-tax Act and it cannot be treated as a gift within the meaning of the Gift-tax Act as the settlement deed itself is in discharge of an obligation of the Hindu undivided family in relation to the daughter or son who are members of the family, and, therefore, it is not a gift at all. In this connection, he also referred to the decision of this court in CGT v. M. Radhakrishna Gade Rao [1983] 143 ITR 260 (Mad) and of the Calcutta High Court in CGT v. Basant Kumar Aditya Vikram Birla [1982] 137 ITR 72. But since the assessee had claimed or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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