COMMISSIONER OF GIFT TAX Vs. TRIVENI DEVI

JUDGEMENT

(1.) THIS reference has been made under Section 26(1) of the GT Act, 1958 at the instance of the CGT for opinion of this Court on the following question of law: Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that there was no gift of 29 Tolas of gold made by late Shri Roshanlal Goyal to his daughter -in -law Smt. Usha Goyal at the time of marriage?

(2.) THE assessment pertains to the asst. yr. 1982 -83. The assessee filed her return on 9th Nov., 1984 and the value of the taxable gift was shown as nil. Notice under Section 16(1) of the GT Act was issued on 19th Oct., 1984 to the assessee. Notice under Section 15(2) of the GT Act was also served. Late Shri Roshanlal Goyal gifted 29 Tolas of gold ornaments to his daughter -in -law. He submitted that the transfer of ornaments was neither voluntary nor without consideration, therefore, it was not a gift in terms of Section 2(xii) of the GT Act and not liable to tax. The GTO held that the value of the ornament is taxable. Appeal was preferred before the AAC, which came to be dismissed vide order dt. 29th Jan., 1987. On further appeal before the Tribunal, Jaipur, it was held that the ornaments given, to the daughter -in -law are a social and moral obligation and the value of the ornaments is not taxable.

(3.) LEARNED Counsel for the petitioner has submitted that this point, 'whether the ornaments given to the daughter or daughter -in -law at the time of marriage are a gift under the provisions of GT Act, 1958' has been considered by the various High Courts. In number of judgments, it has been held that the gold ornaments given to the daughter at the time of marriage is a moral and social obligation and is a gift and not a taxable gift.