1994 (1) TMI 73 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, allowing a deduction of Rs. 1,12,178 for educational expenses for the assessee's children under section 5(1)(xii) of the Gift-tax Act. The court disagreed with the Revenue's argument that education should be limited to higher or specialized education, stating that any normal educational expenses incurred by a parent should also be considered. The court found that the amount set apart for education was not a gift but rather an obligation of the parent. The court distinguished this case from a previous Bombay High Court decision and upheld the Appellate Tribunal's decision based on the relevant facts considered.