Gift-tax exemption for marriage gifts extends to customary post-wedding ceremonies before the bride leaves her parental home.

A gift of movable property, such as gold ornaments, could be validly made by delivery without a formal gift deed, and a transfer made to a daughter during customary marriage-related ceremonies was treated as made "on the occasion of marriage" for exemption under section 5(1)(vii) of the Gift-tax Act, 1958. The expression was held to extend beyond the marriage ceremony itself to include post-marriage customary rites before the bride left her parental home. On these facts, the daughter remained within the relevant family setting, and the gift qualified for exemption, cancelling the gift-tax assessment in favour of the assessee.

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Issues: Whether the gift of gold ornaments made by the assessee to his daughter on the day after her marriage qualified for exemption under section 5(1)(vii) of the Gift-tax Act, 1958.

Analysis: The gift consisted of movable property, and such property could be validly gifted by delivery without a formal gift deed. The expression "on the occasion of marriage" was held to extend beyond the bare marriage ceremony and to include the customary post-marriage ceremonies before the bride left her parental home. On the facts, the daughter had not yet ceased to be dependent on her parents merely because the marriage rites had been performed the previous day.

Conclusion: The exemption under section 5(1)(vii) was available, and the gift-tax assessment was liable to be cancelled in favour of the assessee.

Final Conclusion: The appeal succeeded and the assessee obtained full relief against the gift-tax assessment.

Ratio Decidendi: A gift of movable property made to a daughter during the customary marriage-related ceremonies, before she leaves her parental home, is a gift made on the occasion of marriage and qualifies for exemption under section 5(1)(vii).

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