Marriage jewellery as family expenditure, not a taxable gift, when incurred in discharge of a legal obligation.

Jewellery presented by a father to his daughter on her marriage was treated as marriage expenditure rather than a taxable gift. The analysis applied Hindu law principles recognising a daughter's right to reasonable marriage expenses out of family resources, so the expenditure was not a voluntary transfer in the sense required for gift-tax. The nature of the jewellery, whether ancestral or purchased, and any community custom were considered immaterial. A payment made in discharge of a legal obligation and supported by consideration in money or money's worth falls outside the statutory definition of a gift, and the marriage-related jewellery expenditure was therefore excluded from gift-tax.

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Issues: Whether jewellery presented by a father to his daughter on her marriage constituted a taxable gift, or was merely marriage expenditure outside the ambit of gift-tax.

Analysis: The presentation of jewellery in connection with a daughter's marriage was treated as part of the marriage expenses. The nature of the jewellery, whether ancestral or purchased, and any community custom regarding presentation of jewels, were held to be immaterial. The decisive consideration was that under Hindu law an unmarried daughter has a right to reasonable marriage expenses out of family resources, and the expenditure is therefore not voluntary in the sense required for a gift. A transaction made in discharge of a legal obligation and supported by consideration in money or money's worth does not answer the statutory definition of a gift.

Conclusion: The jewellery expenditure of Rs. 58,691 was not a gift and was not chargeable to gift-tax.

Final Conclusion: The entire amount spent on the daughter's marriage, including the jewellery, was treated as marriage expenditure and excluded from gift-tax.

Ratio Decidendi: Expenditure incurred by a father on essential jewellery for his daughter's marriage, when made in discharge of a legal obligation under Hindu law, is marriage expenditure and not a voluntary transfer without consideration; it therefore falls outside the definition of a gift under the Gift-tax Act.

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