COMMISSIONER OF GIFT TAX Vs. P M ABRAHAM

JUDGEMENT

(1.) THE following questions are referred under S. 26(1) of the GT Act, 1958, for decision at the instance of the Revenue:

(2.) THE matter arises under the GT 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, dt. 3rd Nov., 1987. For the asst. yr. 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 which was worked out at the rate of Rs. 500 per cent. The assessing authority did not accept the said valuation. He estimated the value of the gifted property at Rs. 1,50,000. After giving the basic deduction allowable under S. 5 of the Act and the further deduction under S. 5(1)(vii) of the Act, the taxable gift was determined at Rs. 1,20,000 and raised a demand of Rs. 34,750. Being aggrieved by the said assessment, the assessee filed appeal before the Dy. CGT(A), Thiruvananthapuram. In the said appeal, the assessee, relying on the order of the Tribunal in Smt. Indira Devi vs. GTO (GTA Nos. 12 and 34/Coch/86, dt. 13th May, 1991), contended that the gift in question is completely exempted from gift-tax. The appellate authority took the stand that the said decision was rendered in the context of the provisions of the Hindu law and that the said decision has no application in the case of a gift by a Christian father. The appellate authority also did not accept the contention regarding the value of the gifted property. The assessee filed second appeal before the Tribunal, Cochin Bench, and contended that the gift deed was executed in connection with the marriage of his daughter, that it was specifically stated in the gift deed that the marriage was fixed to be solemnised on 5th Nov., 1987, and that the property was gifted for the maintenance and future security of the daughter. It was also contended that there 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 vs. Marykuty 1991 (2) KLJ 26 : (1991) 2 KLT 71 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 (supra). 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 question is not exigible to tax under the Act.

(3.) SHRI P.B. Sahasranaman, the learned counsel appearing for the respondent-assessee, submits that there is a custom in the community of the Marthoma Syrian Christian to give properties to the daughter at the time of marriage and that the assessee had proved the said custom by producing a certificate from the Carmel Marthoma Church. He further relied on the decision of this Court in Scariah Varghese vs. Marykutty (supra) mentioned above. The counsel also submits that if for any reason the order of the Tribunal cannot be sustained since the Tribunal has not considered the question of valuation of the gifted property, the matter has to be sent back for considering the said question.