Marriage presents from a father to his daughter were not taxable gifts because they were made in discharge of a maintenance obligation.

Marriage presents of jewellery, silver articles and cash made by a Hindu father to his daughter on her marriage, out of self-acquired property, were not treated as a gift under section 2(xii) of the Gift-tax Act because a taxable gift requires a voluntary transfer without consideration in money or money's worth. The father's statutory duty to maintain his unmarried daughter under the Hindu Adoption and Maintenance Act, 1956, including reasonable marriage expenses as part of maintenance, extends to self-acquired property as well as joint family property. Accordingly, a reasonable marriage settlement made in discharge of that obligation is supported by consideration and is not a voluntary transfer; the presents were therefore not liable to gift-tax.

---

---

Issues: Whether presents of jewellery, silver articles and cash made by a Hindu father to his daughter on her marriage, out of self-acquired property, constituted a gift within section 2(xii) of the Gift-tax Act and were exigible to gift-tax.

Analysis: A gift under section 2(xii) requires a voluntary transfer without consideration in money or money's worth. Under section 20(1) of the Hindu Adoption and Maintenance Act, 1956, a person is under a legal obligation to maintain his unmarried daughter, and section 3(b) includes reasonable expenses incidental to her marriage within maintenance. That statutory obligation is not confined to joint family property; it extends equally to self-acquired property. Therefore, a reasonable marriage settlement or marriage presents made in discharge of that obligation are supported by consideration and are not voluntary transfers.

Conclusion: The marriage presents were not gifts within section 2(xii) of the Gift-tax Act and were not liable to gift-tax. The issue was decided in favour of the assessee.

---