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TMI Blog1987 (4) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. The questions read as under : "(1) Whether, on the facts and in the circumstances of the case, the claim of the applicant that the settlement dated March 30, 1960, executed by the applicant in favour of his minor son, Bharat, in discharge of his legal obligation under section 20 of the Hindu Adoptions and Maintenance Act, 1956, to maintain his son was not a gift under section 2(xii) of the G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77] 107 ITR 45 (Bom) and CIT v. K. M. Sheth [1986] 160 ITR 814 (Bom). Accordingly, we answer the first two questions in the affirmative and in favour of the Revenue. This takes us to the third question. The assessee had settled on trust 1,500 equity shares of Shree Changdeo Sugar Mills Ltd. by a deed of trust dated March 30, 1960, for the benefit of his minor son, Bharat, aged 2 years at the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift can be bifurcated and the amount referable to their education can be held exempt, Shri Mehta has relied on the Patna High Court decision in the case of CGT v. V. S. Rao [1976] 102 ITR 308. Further, Shri Mehta stated that provision for education does not necessarily mean education for a particular year. It means and includes the expenditure on education as and when necessary. It is true that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged to arrange for. It means higher or specialised education whether in India or abroad. The circular of the Department on which Shri Mehta placed reliance by referring to Gulanikar's Treatise on Law and Practice of Gift-tax and Wealth-tax, 1984 edition, at page 3.114, clearly indicates that for exemption under section 5(1)(xii), the provision has to be for higher education in India or abroad. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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