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TMI Blog1998 (4) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... he educational expenses. He valued the lands so gifted at Rs. 50,000. The Gift-tax Officer, in turn, valued the lands so gifted at Rs. 1,10,600. The assessee also made certain other gifts. The Gift-tax Officer ultimately determined the taxable gift at Rs. 4,35,260. While arriving at the quantum of taxable gift as stated above, the Gift-tax Officer granted statutory exemption of Rs. 5,000 under sub-section (2) of section 5, under section 5(1)(xii) of the Gift-tax Act, 1958 (for short "the Act"), relating to educational expenses. He did not, however, grant any exemption to provide for the marriage expenses of the minor daughter, inasmuch as the marriage of such minor daughter could not have been in contemplation at that point of time. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 education of the assessee's minor child having regard to the facts and circumstances of the case ? 2. Whether the Tribunal was justified in restricting the amount of gift exempted under section 5(1)(xii) at Rs. 25,000 having accepted the total amount of expenditure for education of the assessee's minor child amounting to Rs. 40,000 over a period of twenty years at Rs. 2,000 per year ?" Arguments of Mrs. Aparna Nandakumar, learned counsel, representing Mr. R. Venkataraman, learned counsel appearing for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 the assessee's minor child, having regard to the facts and circumstances of the case. The Tribunal was further justified in restricting the amount of gift exempted under section 5(1)(xii) of the Act at Rs. 25,000.
The tax case is thus disposed of. There shall, however, be no order as to costs, on the facts and in the circumstances of the case. X X X X Extracts X X X X X X X X Extracts X X X X
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