Marriage expenses for an unmarried daughter were not a taxable gift because they discharged a recognised family obligation under Hindu law.

Expenditure by a Hindu undivided family on an unmarried daughter's marriage, including jewellery, cash and a fridge, was treated as a legitimate family charge under Hindu law where the estate had sufficient funds. Because the karta's payment discharged the family's maintenance-related obligation and was not a voluntary transfer without consideration, it did not satisfy the definition of a "gift" under section 2(xii) of the Gift-tax Act, 1958. The amount was therefore not includible in gift-tax computation, and its exclusion from the assessment was justified.

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Issues: Whether the expenditure incurred by a Hindu undivided family on the marriage of its unmarried daughter, consisting of jewellery, cash and a fridge, constituted a "gift" within section 2(xii) of the Gift-tax Act, 1958, so as to be includible in gift-tax computation.

Analysis: The marriage expenses of an unmarried daughter of a joint Hindu family are a legitimate charge on the family property where the family has sufficient funds. The daughter's right to marriage expenses is recognised by Hindu law as part of her maintenance right, and the karta's payment in discharge of that obligation is not a voluntary transfer made without consideration. Since the expenditure was found to be legitimate marriage expenses and not excessive having regard to the family estate, the payment was not a transfer of property by one person to another in the sense contemplated by section 2(xii) of the Gift-tax Act, 1958.

Conclusion: The amount spent on the daughter's marriage did not amount to a taxable gift, and the exclusion of the sum from the gift-tax assessment was justified.

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