SMT. LALITABAI SOBHAGMAL v. COMMISSIONER OF GIFT-TAX
[Citation -1986-LL-0317]

Citation 1986-LL-0317
Appellant Name SMT. LALITABAI SOBHAGMAL
Respondent Name COMMISSIONER OF GIFT-TAX
Court ITAT
Relevant Act Gift-tax
Date of Order 17/03/1986
Assessment Year 1979-80
Judgment View Judgment
Keyword Tags daughter-in-law • gift-tax
Bot Summary: JUDGMENT JUDGMENT The judgment of the court was delivered by SOHANI J.-By this reference under section 26(1) of the Gift-tax Act, 1958, the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion: Whether, on the facts and in the circumstances of the case, the Income- tax Appellate Tribunal was justified in holding that the assessee was not entitled to the deduction of Rs. 10,000 under section 5(1)(vii) of the Gift-tax Act, 1958 The material facts giving rise to this reference, briefly, are as follows: The assessee is a widow. The Gift-tax Officer sought to tax under the Act the value of the gift of 30 tolas of gold ornaments made by the assessee. The Tribunal found that the gift in question was made by the assessee to Surekha, prior to the marriage of her son, at the time of the betrothal ceremony. The Tribunal held that at the relevant time, Surekha was not related to or dependent on the assessee for support and maintenance. The learned counsel for the assessee, tried to contend that giving 30 tolas of gold ornaments to her would be daughterin-law by the assessee really amounted to incurring an expenditure. The short question referred to this court is whether the assessee was entitled to deduction of Rs. 10,000 under the provisions of section 5(1)(vii) of the Act. In view of the finding of the Tribunal that Surekha was not related to or dependent on the assessee at the time of the gift, the provisions of section 5(1)(vii) of the Act were rightly held to be not attracted.


JUDGMENT JUDGMENT judgment of court was delivered by SOHANI J.-By this reference under section 26(1) of Gift-tax Act, 1958 (hereinafter referred to as " Act "), Income-tax Appellate Tribunal, Indore Bench, has referred following question of law to this court for its opinion: " Whether, on facts and in circumstances of case, Income- tax Appellate Tribunal was justified in holding that assessee was not entitled to deduction of Rs. 10,000 under section 5(1)(vii) of Gift-tax Act, 1958?" material facts giving rise to this reference, briefly, are as follows: assessee is widow. During assessment year 1979-80, she made gift of 30 tolas of gold ornaments to her would be daughter-in-law at time of betrothal ceremony. Gift-tax Officer sought to tax under Act value of gift of 30 tolas of gold ornaments made by assessee. It was contended before Gift-tax Officer that assessee had only incurred marriage expenditure and that she had not made any gift. Gift-tax Officer did not accept that contention. He held that value of 30 tolas of gold ornaments worth Rs. 30,000 was subject to gift-tax. Aggrieved by order passed by Gift-tax Officer, assessee preferred appeal which was allowed by Appellate Assistant Commissioner. second appeal was preferred by Department before Tribunal. Tribunal found that gift in question was made by assessee to Surekha, prior to marriage of her son, at time of betrothal ceremony. Tribunal held that at relevant time, Surekha was not related to or dependent on assessee for support and maintenance. Tribunal, therefore, came to conclusion that provisions of section 5(1)(vii) of Act were not attracted. Tribunal, therefore, allowed appeal. Aggrieved by order passed by Tribunal, assessee sought reference and it is at instance of assessee that aforesaid question of law has been referred to this court for its opinion. Having heard learned counsel for parties, we have come to conclusion that this reference has to be answered in affirmative and against assessee. learned counsel for assessee, tried to contend that giving 30 tolas of gold ornaments to her would be daughterin-law by assessee really amounted to incurring expenditure. However, short question referred to this court is whether assessee was entitled to deduction of Rs. 10,000 under provisions of section 5(1)(vii) of Act. In view of finding of Tribunal that Surekha was not related to or dependent on assessee at time of gift, provisions of section 5(1)(vii) of Act were rightly held to be not attracted. Tribunal was, therefore, justified in holding that assessee was not entitled to deduction of Rs. 10,000 under section 5(1)(vii) of Gift-tax Act, 1958. Our answer to question referred to this court is, therefore, in affirmative and against assessee. In circumstances of case, parties shall bear their own costs of this reference. *** SMT. LALITABAI SOBHAGMAL v. COMMISSIONER OF GIFT-TAX
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