Commissioner Of Gift-Tax vs B.S. Apparao

The Supreme Court upheld the decision of the High Court affirming that the transfer of land by the assessee to his three minor daughters did not constitute a taxable gift under the Gift-tax Act, 1958. The Court interpreted Section 5(1)(vii) of the Gift-tax Act, clarifying that the transfer was made to fulfill the legal obligation of maintenance under Section 20 of the Hindu Adoptions and Maintenance Act, 1956. Consequently, the appeal by the Revenue was dismissed, affirming the Tribunal's and High Court's ruling.