Gift-tax exemption for dependent relative's marriage denied where son had independent income and assets.

Exemption under section 5(1)(vii) of the Gift-tax Act applied only where the gift was made to a relative who was actually dependent on the assessee for support and maintenance and the gift was made on that dependent relative's marriage. The term "dependent" required real factual dependence for the essentials of life, not merely a filial relationship. On the facts, the assessee's son was separately assessed to income tax and had substantial income and assets, which negatived any finding of dependence. The claimed exemption was therefore not available, and the appeal failed.

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Issues: Whether the gift made to the assessee's son on the occasion of his marriage qualified for exemption under section 5(1)(vii) of the Gift-tax Act on the ground that the son was dependent upon the assessee for support and maintenance.

Analysis: Exemption under section 5(1)(vii) requires three cumulative conditions: the gift must be to a relative, the relative must be dependent upon the assessee for support and maintenance, and the gift must be on the occasion of that dependent relative's marriage. The term 'dependent' connotes actual factual dependence for essentials of life and not a mere filial relationship. On the facts, the son was separately assessed to income-tax and had substantial income and assets, which negatived the claim that he was dependent upon the assessee for support and maintenance.

Conclusion: The exemption was not available and the appeal failed.

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