Marriage-related transfer by a Hindu mother to her daughter is not a taxable gift where made in discharge of maintenance obligation.

A transfer by a Hindu mother to her unmarried daughter for marriage-related expenses and jewellery, made in accordance with family or community custom, was treated as discharge of the mother's legal and moral obligation of maintenance rather than a taxable gift. Maintenance of an unmarried daughter includes reasonable expenses incidental to marriage, and evidence of custom supported the character of the transfer as marriage provision made out of love and affection. On that basis, the transfer was held not exigible to gift-tax under the Gift-tax Act.

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Issues: Whether the transfer of property and jewellery by a mother to her daughter in contemplation of the daughter's marriage, and in accordance with family/community custom, was exempt from gift-tax.

Analysis: A Hindu female is under a legal obligation to maintain her children, and maintenance in the case of an unmarried daughter includes the reasonable expenses incidental to marriage. The transfer was made out of love and affection in connection with the daughter's marriage, and the evidence of community custom supported the view that parents provide property and jewellery for daughters at marriage. On that basis, the transfer was treated as one made in discharge of the donor's obligation rather than as a taxable gift.

Conclusion: The transfer was held to be exempt from the Gift-tax Act and not exigible to gift-tax.

Ratio Decidendi: A transfer by a Hindu mother to her unmarried daughter, made in discharge of the mother's legal and moral obligation and for marriage-related maintenance in accordance with established custom, is not a gift exigible to gift-tax.

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