2003 (4) TMI 42 - HC - Income Tax

Gift Tax - Whether on the facts and circumstances of the case the Appellate Tribunal is right in law in holding that the value of a car and jewellery given by the assessee to his daughter at the time of her marriage cannot be subjected to gift-tax? - The order of the Appellate Tribunal is wholly incorrect. The order is therefore set aside. We restore the order of the Commissioner of Income-tax (Appeals). The question under reference is answered in favour of the Revenue

Summary

The High Court of Madras held that the gift of a car and jewellery by a father to his daughter at the time of her marriage is subject to gift-tax, rejecting the Appellate Tribunal's decision. The court found the Tribunal's reasoning baseless and incorrect, setting aside their order and ruling in favor of the Revenue.