9911796707
TMI Blog1998 (4) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... . Kasturiswamy Naidu, Coimbatore, gifted 10.06 acres of agricultural land to his minor daughter, Sunitha, aged five then. He in respect of the land so gifted, claimed exemption on two grounds. Firstly, the gift was intended to provide for her marriage. Secondly, it was for the purpose of meeting the educational expenses. He valued the lands so gifted at Rs. 50,000. The Gift-tax Officer, in turn, v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation adopted by the Gift-tax Officer in respect of agricultural lands and what was challenged was the exemption granted under section 5(1)(xii) of the Act. The Commissioner of Income-tax (Appeals), Coimbatore, enhanced the exemption limit under section 5(1)(xii) from Rs. 5,000 to Rs. 25,000. He provided the basis for such an enhancement thus : He fixed a reasonable sum of Rs. 2,000 per year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... views of the Commissioner of Income-tax (Appeals) as relatable to the grant of exemption under section 5(1)(xii) of the Act. It is on these facts, the Tribunal at the instance of the assessee referred the questions of law as below for the opinion of this court : "1. Whether, the Tribunal is justified in holding that the amount of Rs. 2,000 per annum would be sufficient for the cost of educati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other and, therefore, it is, we proceed to enter into the arena of discussion in finding out the answers for both the questions in a compendious fashion. The exemption granted in respect of agricultural lands under section 5(1)(xii) of the Act quantified in a sum of Rs. 5,000 by the Gift-tax Officer is rather incredibly low, on the facts and in the circumstances of the case. The Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under section 5(1)(xii) of the Act cannot at all be stated to be not sustainable in law, inasmuch as the relevant factual matrix had been properly appreciated in arriving at the figure of exemption. For the reasons as above, we answer both the questions as below : The Tribunal is justified in holding that the amount of Rs. 2,000 per annum would be sufficient for the cost, of education of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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