Marriage-linked gift exemption turns on nexus with the wedding, not strict timing, and can cover later fulfilment of an earlier promise.

A gift may qualify as having been made on the occasion of marriage for exemption under section 5(1)(vii) of the Gift-tax Act, 1958 even where it is executed many years later, if the marriage remains the real cause and the requisite nexus is proved. The relevant test is association with the marriage event, not strict contemporaneity. A recital in the gift deed showing an earlier promise made at the time of marriage can support that nexus, and uncontroverted documentary material may establish that the later transfer was in fulfilment of that promise. On that basis, the exemption was upheld.

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Issues: (i) Whether a gift made nearly 15 years after the daughter's marriage could still be treated as a gift made on the occasion of the marriage for the purpose of exemption under section 5(1)(vii) of the Gift-tax Act, 1958. (ii) Whether the gift deed established an earlier promise made at the time of the marriage to make the gift in favour of the daughter.

Issue (i): Whether a gift made nearly 15 years after the daughter's marriage could still be treated as a gift made on the occasion of the marriage for the purpose of exemption under section 5(1)(vii) of the Gift-tax Act, 1958.

Analysis: The expression "on the occasion of the marriage" was construed broadly and not as requiring strict contemporaneity. The relevant test was whether the gift was associated with the marriage event or whether the marriage was the immediate cause or reason for the gift. The lapse of time by itself was not decisive if the requisite nexus with the marriage was established.

Conclusion: The gift could be treated as having been made on the occasion of the marriage, and the assessee was entitled to exemption under section 5(1)(vii) of the Gift-tax Act, 1958.

Issue (ii): Whether the gift deed established an earlier promise made at the time of the marriage to make the gift in favour of the daughter.

Analysis: The recital in the gift deed stated that the donor had promised at the time of marriage to make an unconditional gift for the daughter's support and maintenance. The finding of the Tribunal was supported by the document itself and there was no contrary material from the Revenue to dislodge that finding.

Conclusion: The earlier promise was established, and the later transfer was in fulfilment of that promise.

Final Conclusion: The reference was answered in favour of the assessee, and the Tribunal's view granting exemption under section 5(1)(vii) of the Gift-tax Act, 1958 was sustained.

Ratio Decidendi: For the purpose of the marriage-linked exemption under section 5(1)(vii) of the Gift-tax Act, 1958, the controlling factor is the nexus between the gift and the marriage, and not merely the temporal gap between the two events; a gift made in fulfilment of an earlier promise at the time of marriage satisfies that requirement.

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