Marriage-related share transfer by HUF was not a taxable gift because it discharged a family obligation, not a voluntary bounty.

A transfer of shares by a Hindu undivided family in discharge of its moral and legal obligation to make reasonable provision for a daughter's marriage was not a voluntary transfer without consideration, so it fell outside the definition of "gift" under the Gift-tax Act. The time gap between the marriage and the transfer was immaterial on the facts because the transfer was still occasioned by the marriage. Since the transaction was not a gift at all, exemption under the marriage-related provision was not attracted and no taxable gift arose.

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Issues: (i) Whether the transfer of shares to the assessee's daughter on the occasion of her marriage constituted a "gift" within section 2(xii) of the Gift-tax Act, 1958. (ii) Whether exemption under section 5(1)(vii) of the Gift-tax Act, 1958 was available.

Issue (i): Whether the transfer of shares to the assessee's daughter on the occasion of her marriage constituted a "gift" within section 2(xii) of the Gift-tax Act, 1958.

Analysis: A transfer is a gift only if it is voluntary and without consideration. The expression "on the occasion of marriage" was held not to mean only at the exact time of marriage. Where the family obligation to make reasonable provision for the daughter's marriage is discharged, the transaction is not voluntary in the relevant sense. The time gap between marriage and transfer was found immaterial on the facts, and the transfer was treated as occasioned by the marriage and as a discharge of a family obligation rather than a taxable gift.

Conclusion: The transfer did not constitute a taxable gift under section 2(xii) of the Gift-tax Act, 1958, and the finding was in favour of the assessee.

Issue (ii): Whether exemption under section 5(1)(vii) of the Gift-tax Act, 1958 was available.

Analysis: The exemption applies to gifts made to a dependent relative on the occasion of marriage. Since the transaction was held not to be a gift at all, the exemption provision was not attracted. The words of the provision were also viewed as inapplicable to the assessee's case on the footing of a Hindu undivided family.

Conclusion: No exemption under section 5(1)(vii) arose for consideration, and the issue was answered in favour of the assessee.

Final Conclusion: The transfer was held not taxable under the Gift-tax Act, and the assessee obtained complete relief.

Ratio Decidendi: A transfer made by a Hindu undivided family in discharge of its moral and legal obligation to make reasonable provision for a daughter's marriage is not a voluntary transfer within the definition of gift, and a reasonable time gap from the marriage does not by itself make the transfer taxable as a gift.

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