JUDGMENT :

A. Pasayat, J. - These two references are inter-related, and are disposed of by this common judgment.

2. Accepting the prayer of the Revenue for reference, the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (in short, " the Tribunal"), has referred the following question for the opinion of this court u/s 26(1) of the Gift-tax Act, 1958 (hereinafter referred to as "the Act") :

" Whether the married daughters-in-law of a karta (an assessee) of a Hindu undivided family would be relatives dependent upon him and whether gifts made by their father-in-law immediately after their marriage, are eligible for exemption u/s 5(1)(vii) of the Gift-tax Act, 1958 ?",

3. The assessment years involved are 1980-81 and 1981-82.

4. The background facts as culled out from the statement of case drawn up by the Tribunal are that Sri K. B. B. Subudhi of Berhampur in the district of Ganjam (hereinafter referred to as " the assessee") as karta of the Hindu undivided family filed two returns of gift on March 31, 1982, for the assessment years 1980-81 and 1981-82 disclosing a total gift of Rs. 47,172 and Rs. 61,612 and a taxable gift of Rs. 32,172 and Rs. 46,612, respectively. According to the ret