Per Shri N. Krishnamurthy, Judicial Member - This appeal by the assessee is directed against the order dated 19-5-1987 of the Appellate Assistant Commissioner of Gift-tax, Madras relating to the assessment year 1978-79.

2. The assessee is a Hindu and an individual by status. On the occasion of the, marriage of his daughter on 23-1-1978, the assessee gave certain gold ornaments studded with diamonds, silver articles and cash of Rs. 16,159 the aggregate value of all these amounting to Rs. 1,71,827. In his gift-tax return for the assessment year 1978-79 the assessee claimed that as a father he is under an obligation to get his daughter married, that he belongs to Nagarthar community and according to the custom of this community, presents are made to the daughter at the time of marriage and consequently the entire amount presented to the daughter is exempt from gift-tax. However, the Gift-tax Officer gave exemption of Rs. 10,000 and Rs. 5,000 under section 5(1) and 5(2) respectively and treated the balance amount of Rs. 1,52,256 as gift and subjected the same to gift-tax.

3. Aggrieved, the assessee preferred an appeal to the Appellate Asstt. Commissioner. Before the AAC it was submi