Marriage expense transfer to unmarried daughter is not a taxable gift when made in discharge of parental maintenance obligation.

A transfer by a Hindu father to his unmarried daughter for marriage expenses is not a taxable gift where it is made in discharge of his pre-existing legal obligation to maintain her. The analysis treats reasonable marriage expenses as part of the duty of maintenance under the Hindu Adoptions and Maintenance Act, so the payment is supported by consideration in money or money's worth and is not a voluntary transfer without consideration. On that basis, the amount does not fall within the definition of "gift" under section 2(xii) of the Gift-tax Act, 1958, and is not liable to gift-tax.

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Issues: Whether the amounts transferred by a Hindu father to his unmarried daughter for her marriage expenses constituted a taxable gift under the Gift-tax Act.

Analysis: The transfer was made to the assessee's daughter with the stated object of meeting her marriage expenses and was linked to the father's legal and social obligation to maintain his children. Under the Hindu Adoptions and Maintenance Act, maintenance of an unmarried daughter includes reasonable expenses of her marriage. A transfer made in discharge of such a pre-existing legal obligation is supported by consideration and is not a voluntary transfer without consideration in money or money's worth. The reasoning followed the principle that a reasonable provision for a daughter's marriage, made in fulfilment of a legal obligation, does not amount to a gift chargeable to gift-tax.

Conclusion: The transfer was not a gift within section 2(xii) of the Gift-tax Act, 1958, and was not liable to gift-tax; the assessee succeeded.

Ratio Decidendi: A transfer made by a Hindu father to his unmarried daughter in discharge of his pre-existing legal obligation to maintain her and provide for her marriage expenses is not a voluntary transfer without consideration and therefore does not constitute a taxable gift.

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