9911796707
TMI Blog1982 (10) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... erty valued at Rs. 62,664 and yielding an annual rental income of Rs. 5,222 besides a cash gift of Rs. 5,000. The entire gift was claimed as exempt u/s 5 (1) (xii) of the GT Act being for educational purposes. The GTO restricted the exemption u/s 5 (1) (xii) to Rs. 10,000. The AAC considered the exemption granted fair and reasonable having regard to the facts of the case and dismissed the appeal. 3. The assessee in further appeal before us contends that the entire value of the gift is to be exempted having regard to all the circumstances of the case. It is contended that the assessee decided to send his son to Bombay for higher education after graduation under the guardianship of his brother, a permanent resident there. The assessee it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the donee utilises the same for some purposes other than the purpose of the gift defeating the intention of the donor. It is also stated that the donee is not debarred from the proposed education by joining M.Com. class at Ernakulam and the having regard to the status of the assessee, the family background and the provisions made, the exemption claimed is to allowed in full. 4. On behalf of the revenue, it was maintained that exemptions provided under the clause only in respect of the gifts for the education of the donor's children to the extent to which he is able to prove to the satisfaction the of GTO that the gift is reasonable having regard to the circumstances of the case. It is said that the donee is staying with his parents havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it to which the gift made by the assessee for purposes of education is reasonable. The gift deed had been executed by the assessee with the recital that the donee shall prosecute his studies, the assessee had after 32 years of service retired, his resources were therefore, limited and he intended to make provision for the general needs and the educational needs of his son. With these recitals the formal transfer of the property had been made to enable the donee to meet his needs. From this it is clear that the gift was not made exclusively for the purpose of education. The intention of the donor was that the property should be available with the assessee to prosecute his studies had been partly for educational purposes and partly for genera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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