9911796707
TMI Blog1979 (1) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... the gift-tax return filed on 16th Oct. 1974 the value of taxable gifts was shown at only Rs. 5,000 i.e. after claiming as exempt gifts to the extent of Rs. 40,000 under s. 5(1)(xii) comprised of gifts to four of the donees, i.e. except Miss Sandra Victoria, and Rs. 5,000 which was the basic exemption. The narration in the assessment order which may give the improvement that exemption was claimed only in the covering letter does not appear to be factually correct. 3. Regarding the donees in respect of whom gifts were claimed to be exempt under s. 5(1) (xii), the relevant particulars furnished in the covering letter to the gift-tax return were as under: 1. Miss Tvonne Victoria-aged 24, was studying in the General Nursing and Mid-wifely co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts of the firm of the purpose of the gift cannot constitute a valid ground for denial of exemption especially as in the return and in the covering letter the claim had been explicitly made and further the return was duly verified. Unless the verification in the return was shown to be false, the AAC held, it would not be correct to deny the exemption under s. 5(1)(xii) of the Gift-tax Act. As far as the reasonableness of the amount is concerned, the AAC mentioned that exemption was not denied by the Gift-tax Officer on the score that the quantum was reasonable. According to the AAC, there was enough material to show that the gifts were made for the education of the donees and granted exemption of Rs. 40,000. 6. The Revenue is in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift was certainly one item of evidence if the catena of cases relating to treatment of property as H.U.F. property or otherwise is looked to. One such decision relied on was that in 66 ITR 63. His final argument was that the assessee was not the legal guardian of the minors but it was her husband and if the husband chose voluntarily to meet the educational expenses certainly no adverse inference could be drawn against the assessee donor. 8. We have considered the rival submissions s. 5(1) (xii) of the GTO provides for exemption of gifts "for the education of his children to the extent to which the gifts are proved to the satisfaction of the GTO as being reasonable having regard to the circumstances of the case." Regarding the test of rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IE VICTORIA: The donee is continuing her studies in nursing at the Our Lady Nursing School, St. Joseph Hospital, Dindigal. 2. Miss. YVONNE VICTORIA; The donee was a stipendiary student in higher grade general nursing and mid wifely from 1st January 1973 at the school of Nursing. St. Martha s Hospital, Bangalore. She has completed her studies at the above institution. She proposes to go abroad for higher studies in nursing. 3. Miss. YASMINE VICTORIA: The donee has completed her schooling. She proposes to go abroad for higher studies. 4. Miss. MARYFATHIMA VICTORIA: The donee continues to be a student of the Holy Family Convent, Bombalapitiya, Colombo, Sri Lanka." He also confirmed that from the gift amounts till to day no amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... father who was the legal guardian of the minors. If the legal guardian chose to discharge his legal obligations in educating his children from other funds certainly it was not necessary for the mother-donor in the present case to insist or even suggest that the educational expenses should be met out of the amounts gifted by her. No lapse can be attributed to the donor for non utilisation of the gifted amounts for educational purpose subsequent to the gift, because in law she had no control over the utilisation of the funds subsequent to the gifts. The fact that the donor had made other gifts at various times and this is the first and only occasion on which gifts were claimed as exempt for the education of the children is yet another circums ..... X X X X Extracts X X X X X X X X Extracts X X X X
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