Customary marriage expenditure does not amount to a taxable gift when jewellery is given in discharge of social obligation.

Jewellery given as warri to a daughter-in-law on a son's marriage was treated as marriage expenditure arising from a recognised Hindu social and customary obligation. Because the transfer was made in discharge of that obligation and not as a voluntary transfer without consideration, it did not fall within the statutory concept of a gift under the Gift-tax Act. On that reasoning, the jewellery was not taxable as a gift and the addition was deleted.

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Issues: Whether jewellery given as warri to the daughter-in-law on the occasion of the son's marriage constituted a taxable gift under the Gift-tax Act.

Analysis: The transfer was examined in the context of Hindu social custom and the assessee's customary obligation to incur marriage expenses according to status. The Tribunal noted that the expenditure was part of marriage expenses, that the jewellery was given under a recognized social and customary obligation, and that such giving was not a voluntary transfer without consideration. On these facts, the transfer did not answer the statutory concept of a gift.

Conclusion: The jewellery given as warri was not a taxable gift and the addition was rightly deleted.

Ratio Decidendi: A transfer made in discharge of a recognised customary and social obligation in connection with marriage, and not voluntarily without consideration, does not constitute a gift for gift-tax purposes.

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