Law:

Section:

Section 2(xii) of the Gift-tax Act, 1958 - Gift - Assessment year 1987-88 - Whether obligation of Christian father to maintain his daughter ceases when he has given her away in marriage - Held, yes - Whether, therefore, transfer of certain amount by assessee to her daughter was a gift exigible to gift-tax - Held, yes - Whether, however appellate authorities should have considered assessee's contention that said sum came from assessee, his wife and son - Held, yes [case remanded back on said point] CASE REFERRED TO CGT v. M.C. George [2002] 253 ITR 363/ 120 Taxman 568 (Ker.) [Para 2] P.K.R. Menon for the Applicant. P.C. Joseph and Jacob Thomas for the Respondent. JUDGMENT G. Sivarajan, J. - At the instance of the Revenue, the following two questions of law are referred by the Income Tax Appellate Tribunal. Cochin Bench, Ernakulam under Section 26(1) of the Gift-tax Act, 1958 for decision by this Court :- "1. Whether, on the facts and in the circumstances of the case and also in the light of the Full Bench decision of Kerala High Court reported in 86 ITR 516 (CIT v. P.M. Paily Pillai), the Tribunal is right in its finding on the obligation of the Christian father towards his children? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the gift given by the assessee to his daughter at the time of marriage cannot be considered as transfer and hence it cannot be considered as gift exigible to gift-tax?" The matter arises under the Gift-tax Act, 1958. The assessment year concerned is 1987-88. The assessee gave a sum of Rs. 2 lakhs to his daughter at the time of her marriage on 8-11-1986. He did not file any return of gift tax for the assessment year 1987-88. The assessing authority issued a notice under Section 16(1) of the Act on 12-3-1991. Inspite of the said notice, the assessee did not file any return. The assessing authority therefore, completed the assessment in respect of the gift of Rs. 2 lakhs after exempting a sum of Rs. 10,000 under Section 5(1)(vii) of the Act. The assessee took up the matter in appeal before the Deputy Commissioner of Gift-tax (Appeals), Thiruvananthapuram, who allowed the same by…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492