SMT. RAJA DEVI Vs. INSPECTING ASSISTANT COMMISSIONER.

JUDGEMENT

(1.) THE assessed, Smt. Raja Devi spent Rs. 40,000 in performance of marriages of her two grand daughters (sons daughters), namely, Ms. Rachna and Ms. Sippy in December 1982. She also paid an air -ticket of Rs. 7,840 for Ms. Sushma. In the opinion of the IAC of Gift -tax (Assessment) the said marriage expenditure of Rs. 40,000 and air -ticket of Rs. 7,840 amounted to gift by Smt. Raja Devi. He, Therefore, issued notice under Sec. 16(1) of the Gift -tax Act to the assessed calling upon her to furnish gift -tax return. The assessed filed NIL return. However, the IAC of Gift -tax (Assessment) treated the said expenditure as gift and accordingly completed the assessment. The assessed was unsuccessful in appeal before the Commissioner of Gift -tax (Appeals). Hence this second appeal.

(2.) THE stand of the assessed has been that there was no gift for the expenses incurred for performance of marriages of grand daughters and the travailing expenses incurred for another grand daughters. The Assessing Officer took marriage expenses as gift on the reasoning that there was no legal obligation on the assessed for performance of marriages of her grand daughters. It was legal obligation of fathers of the girls. Thus according to the Assessing Officer, the assessed impliedly made gift of Rs. 40,000 for performance of those marriages and cost of air -ticket of Rs. 7,840 was a direct gift. As to the legal obligation to perform marriages, the Assessing Officer placed reliance of Sec. 20 and 21 read with Sec. 3(b) of the Hindu Adoption and Maintenance Act, 1956.

(3.) THE Commissioner of Gift -tax (Appeals) endorsed the assessment order.