COMMISSIONER OF GIFT TAX Vs. G VENKATASWAMY

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal has stated a case and referred the following questions of law under section 26(1) of the Gift-tax Act, 1958, for the opinion of this court "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the settlement of a piece of land made by the assessee in favour of his married daughter about 14 years after her marriage would amount to 'gift on the occasion of the marriage' and, accordingly, the assessee would be entitled to exemption under section 5(1)(vii) of the Gift-tax Act, 1958?.2. Whether the Appellate Tribunal was justified in holding and had valid materials to hold that there was a promise by the assessee to his daughter at the time of the latter's marriage to make a gift for her support and maintenance and the settlement made on July 3, 1978, was in fulfilment of the said promise?"The assessee is a retired inspector of police. His daughter got married on August 25, 1964, and the assessee made a gift of land worth Rs. 34, 060 to his daughter and claimed exemption during the course of the assessment proceedings for the year 1979-80 under section 5(1)(vii) of the Gift-tax Act, 1958 (hereinafter to be referred to as "the Act").

(2.) THE Gift-tax Officer disallowed the claim of the assessee for exemption of a sum of Rs. 10, 000 which was confirmed by the Appellate Assistant Commissioner on appeal by the assessee.