9911796707
TMI Blog2002 (9) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the Tribunal was right in law in holding that whether the assessee is entitled to exemption under section 5(1)(vii) of the Gift-tax Act does not arise?" The matter arises under the Gift-tax Act, 1958 (hereinafter referred to as "the Act"). The assessment year concerned is 1988-89. The respondent-assessee is an individual owning about 30 acres of rubber estate in Punalur. Out of the above, he had gifted one acre of rubber estate to his daughter at the time of her marriage as per a registered document No. 3562 of 1987 dated November 3, 1987. For the assessment year 1988-89, the assessee filed a return of gift declaring a taxable gift of Rs. 20,000. The value of the property was shown in the document and in the return at Rs. 50,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is a custom in the community of Marthoma Syrian Christians to give a share of the parental property to the daughter at the time of marriage even before the Supreme Court has declared the Travancore Christian Succession Act as inoperative. The assessee relied on the decision of this court in Scariah Varghese v. Marykutty [1991] 2 KLT 71; [1991] 2 KLJ 26, wherein it was specifically held that a Christian father has got the obligation to maintain the child. The assessee also relied on the decision of the Tribunal in Smt. Indira Devi's case. The Tribunal took the view that by gifting the property, the Christian father was discharging his obligation in connection with the marriage of his daughter and accordingly held that the gift in questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained since the Tribunal has not considered the question of valuation of the gifted property, the matter has to be sent back for considering E the said question. As already noted, the assessee had gifted one acre of rubber estate to his daughter at the time of her marriage, that he had valued the gifted property at Rs. 50,000 and filed a return of gift before the assessing authority. He did not raise any contention regarding the total exemption before the assessing authority. However, he had raised the question of exemption before the first appellate authority in view of the decision of the Tribunal in Smt. Indira Devi's case and on the basis of the decision of this court in Scariah Varghese's case [1991] 2 KLT 71 mentioned supra. The fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the gift being voluntarily given, coming within the meaning of section 2(xii) of the Act was liable to tax. Again the question came up for consideration before this court in CGT v. M.C. George [2002] 253 ITR 363. In that case the assessee who is a Christian while marrying away his daughter gifted to his daughter a sum of Rs. 85,00l. He did not file a return under the Act in respect of the said gift. However, he filed a return pursuant to a notice issued under section 16(1) of the Act contending that it was not a gift as defined under the Act, that it was really a transfer of money to his daughter in consideration of the discharge of his obligation as a Christian father. The said contention was rejected by the assessing authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum of Rs. 85,001 by the assessee--father to his daughter could only be deemed to be a gift as defined in the Act. Thus, it is clear that the question raised in this case is squarely covered by the decision in CGT v. M.C. George [2002] 253 ITR 363 (Ker). Following the said decision, we answer the first question referred in the negative, i.e., against the assessee and in favour of the Revenue. Since the second question is only a facet of the first question which we have now answered, it is unnecessary for us to answer question No.2 specifically. We thus decline to answer question No.2. In this case, the assessee has also challenged the valuation of the property which is the subject-matter of the gift. In view of the finding rendered by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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