Sohani, J. - (1.)BY this reference under Section 26(1) of the Gift-tax Act, 1958 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion :
"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the assessee was not entitled to the deduction of Rs. 10,000 under Section 5(1)(vii) of the Gift-tax Act, 1958?"

(2.)THE material facts giving rise to this reference, briefly, are as follows :
THE assessee is a widow. During the assessment year 1979-80, she made a gift of 30 tolas of gold ornaments to her would be daughter-in-law at the time of the betrothal ceremony. THE Gift-tax Officer sought to tax under the Act the value of the gift of 30 tolas of gold ornaments made by the assessee. It was contended before the Gift-tax Officer that the assessee had only incurred marriage expenditure and that she had not made any gift. THE Gift-tax Officer did not accept that contention. He held that the value of 30 tolas of gold ornaments worth Rs. 30,000 was subject to gift-tax. Aggrieved by the order passed by the Gift-tax Officer, the assessee preferred an appeal which was allowed by the Appellate Assistant Commissioner. A second appeal was preferred by the Department before the Tribunal. THE Tribunal found that the gift in question was made by the assessee to Surekha, prior to the marriage of her son, at the time of the betrothal ceremony. THE Tribunal held that at the relevant time, Surekha was not related to or dependent on the assessee for support and maintenance. THE Tribunal, therefore, came to the conclusion that the provisions of Section 5(1)(vii) of the Act were not attracted. THE Tribunal, therefore, allowed the appeal. Aggrieved by the order passed by the Tribunal, the assessee sought a reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this, court for its opinion.

Having heard learned counsel for the parties, we have come to the conclusion that this reference has to be answered in the affirmative and against the assessee. The learned counsel for the assessee tried to contend that giving 30 tolas of gold ornaments to her would-be daughter-in-law by the assessee really amounted to incurring an expenditure. However, the short question referred to this court is whether the assessee was entitled to deduction of Rs. 10,000 under the provisions of Section 5(1)(vii) of the Act. In view of the finding of the Tribunal that Surekha was not related to or dependent on the assessee at the time of the gift, the provisions of Section 5(1)(vii) of the Act were rightly held to be not attracted. The Tribunal was, therefore, justified in holding that the assessee was not entitled to deduction of Rs. 10,000 under Section 5(1)(vii) of the Gift-tax Act, 1958.

Our answer to the question referred to this court is, therefore, in the affirmative and against the assessee. In the circumstances of the case, parties shall bear their own costs of this reference.