2002 (4) TMI 566

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....und that the assessee had performed the marriage of his son Sandeep Auluck and had spent Rs. 1,42,952 on jewellery given as Warri to his daughter-in-law in marriage. The above amount was treated as gift made by the assessee and liable to tax. Accordingly gift-tax assessment was made against the assessee. 3. The assessee impugned above assessment in the appeal before the DCGT(A) and contended that jewellery given as part of Warri was neither voluntary nor without consideration. Therefore, no gift was involved. In support of above contention, reliance was placed on the circular of the CBDT No. 419 dated 6-1-1985 and on decision of the Andhra Pradesh High Court in the case of CGT v. Ch. Chandrasekhara Reddy [1976] 105 ITR 849, decision of C....

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....2] 43 ITD 654 after relying on the decision of the Hon'ble Andhra Pradesh and Calcutta High Courts held that giving of Warri to daughter-in-law was not a gift. The Bench observed as under:- "The assessee transferred jewellery to his daughter-in-law on the occasion of his son's marriage and relying on CGT v. Ch. Chandrasekhara Reddy [1976] 105 ITR 849 (AP) claimed exemption under section 5(1)(vii) in respect of the said gift. The GTO disallowed it on the ground that the son had all independent taxable income, so it was not the obligation of the assessee-father to make a gift to the daughter-in-law and that the department had not accepted the decision on which the assessee was relying on. On appeal, the AAC confirmed the order of the GTO. ....

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....our of the daughter Smt. J. There is no question of gift involved in spending the amount of Rs. 79,141 on the marriage of Smt. J. It is not the case of the Revenue that the whole or any part of the marriage expenses were never incurred. When expenses are really incurred towards the marriage then no part of such expenses can be termed to be not legitimate marriage expenses. Towards diamond ornaments an amount of Rs. 24,016.58 and towards silver vellels an amount of Rs. 6,802.40 were incurred. Out of the list of expenses these two items only can be said to be presents made to the bride. The expenses of Rs. 7,848.50 towards value of silk sarees, dhotis etc. cannot be termed to be presents made. In fact, they are customary expenses to be spent ....