TMI Blog1997 (1) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... e any gift-tax return for the assessment year 1986-87 under appeal showing the payment of Rs. 85,001 as gift. The Gift-tax Officer issued a notice under section 16(1) of the Gift-tax Act, 1958 and called upon the assessee to file a return of gift. In compliance with the notice under section 16(1) the assessee filed a 'nil' gift-tax return on 11-2-1988. The assessee pleaded before the Gift-tax Officer that the payment of Rs. 85,001 to his daughter at the time of her marriage did not constitute a gift. The assessee submitted before the Gift-tax Officer that he was under a moral obligation to maintain his daughter and such maintenance included getting the daughter married in a proper and befitting manner. He further pleaded that he has dischar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssary for getting a suitable bridegroom. His further submission is that the said allotment of cash is not voluntary but for consideration. According to him there is no element of gift involved in such a transaction. In support of this contention, the assessee's representative relied on the decision of the Andhra Pradesh High Court in the case of CIT v. Bandi Subba Rao [1987] 167 ITR 66, wherein the High Court has observed as under : "It is the settled legal position that under the Hindu Adoptions and Maintenance Act, 1956, as well as under the general Hindu law, the obligation of the father to maintain his unmarried daughter as well as the married daughter so long as the daughter is unable to maintain herself from the family, viz., to wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a fact that the assessee had only two daughters. Therefore, settling half the property on the two daughters could not be said to be unreasonable. Under those circumstances, the finding given by the Tribunal that the settlement was in discharge of the pre-existing legal obligation was legal and, therefore, no gift-tax was payable by the assessee". 5. The learned departmental representative, Sri Kuruvila M. George tried to distinguish that the decision of the Andhra Pradesh High Court supra is in the context of the Hindu Adoptions and Maintenance Act, 1956 as well as under the general Hindu law. He submitted that this decision is not applicable to the Christians in the State of Kerala. If this argument of Sri Kuruvila is accepted it wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of justice, equity and good conscience. Justice, equity and good conscience must be justice, equity and good conscience with Indian tradition. A father, an Indian citizen is bound to maintain his children and that is the tradition of the society and that tradition is in accordance with justice, equity and good conscience. Whatever be the special position in English Law on account of certain peculiarities of English system, to say that a father being a Christian and only on account of being a Christian should be considered as a person who has no obligation to maintain his children." In the case of Cheriya Varkey v. Ouseph Thresia AIR 1955 Trav. Coch. 255, the Court observed thus : "In matters not governed by statute or customary law, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to maintain his daughter before and after her marriage if the family to which she was given is not able to properly maintain his daughter. 8. The learned representative of the assessee also cited and relied on the decision of the Madras High Court in the case of CGT v. N.R. Agandeswara Iyer [1995] 214 ITR 360. In that case the assessee was the Karta of a family consisted of his two sons and two unmarried daughters. In a partition between the father and sons, the father was given a larger share because of the obligation of the family to maintain and marry off unmarried daughters. Later on, the father settled on his two unmarried daughters a part of the land held by him by settlement deeds dated 2-5-1970 and 4-5-1970. The value of this land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion that the payment is voluntary and without consideration. We are therefore of the further opinion that the discharge of the liability for maintenance and marriage is for a valid consideration. The Dowry Prohibition Act, 1961, extends support to this proposition. We are satisfied to hold that even a Christian father is under a legal obligation and discharge of such an obligation at the time of marriage of his daughter does not amount to making a gift exigible to gift-tax. So far as this obligation of the father is concerned, we do not find any substance to distinguish a Hindu father from a Christian father. 10. In the light of the above discussed facts and legal position, we are inclined to hold that the assessee is entitled to succeed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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