Law: Gift Tax Act, 1958

Section: 15(3)

Gift Tax Act, 1963(XIV of 1963)-Section 5(4), read with Notification No. S.R.O. 672(K)/63, dated 3-9-1963-Exemption-Dowry-Gift of property to unmarried daughter- Get claimed to be in the form of dowry and 'conditional' on the occasion of marriage of daughters--Marriages neither settled nor about to take place-Gift in anticipation of marriage taking place at some time in the future- Whether a contingent gift-Held yes- Whether governed by the Notification and exempt from gift tax-Held no-Expression "on the occasion of marriage", meaning of - The purpose of the Notification was to exempt gifts made in the form of dowry, on the occasion of a marriage, which meant, when marriage was actually settled and was about to take place. Gifts made in anticipation of marriage taking place at some time in the future will not be governed by the Notification. That would be a conditional or a contingent gift, which cannot described as "irrevocable". In the present, case it was a gift pure and simple and it could not be said that, this was a gift in the form of dowry, as the marriage of none of these five daughters had taken place, on the occasion of this gift. None of the daughters had so far been married and this gift was clearly beyond the scope of the Notification. ORDER The order was passed by A. A. Dareshani, President,.This is the case of an individual, who gifted his house, bearing No. 9/5/C/V, to his five daughters, on 2-3-1973. In his return Bled under Section 15(3) of the Gift tax Act, in March 1974, the appellant claimed exemption from levy of tax, under Notification No. SRO. 672/4/K/63 of 3-9-1963, which read as under: "....... the Central Government is pleased to exempt from the tax payable under the said Act all gifts made in the form of dowry on the occasion of the marriage of an assessee's real daughters". The assessee's contention was that, the gift was made to his real daughters that it of made in the form of dowry, and the gift was "conditional on the occasion was marriage of the daughter". The assessing officer did not agree with the assesse and levied tax on Rs.57,700.00, which according to him, was the market value of the said property, The appellant had…

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