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TMI Blog1974 (8) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... tuated at Ranchi gifted by the assessee to his son. The assessee's daughter was married in May, 1963. The deed of gift was executed on September 28, 1964, reciting therein that possession over the gifted land was given to the daughter in April, 1964. The assessee claimed that it was a gift by him to his daughter, who was dependent upon him for support and maintenance, on the occasion of her marriage, and since it was within the maximum limit prescribed under section 5(1)(vii) of the Act, it was exempt from levy of gift-tax. The Gift-tax Officer field that the gift was effective only on the execution of the deed of gift in September, 1964, which was a long time after the marriage of the assessee's daughter. Hence, it could not be held to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n favour of the son was exempt from gift-tax to the extent of Rs. 54,000 in view of the provision of law contained in section 5(1)(xii) of the Act. The Tribunal has agreed with this finding, and the three questions of law referred for opinion of this court in this connection are the following: "(2) Whether, in the facts and circumstances of the case, the son of the assessee can be said to be a child within the meaning of section 5(1)(xii) of the Gift-tax Act ? (3) Whether, in the facts and circumstances of the case, the Tribunal is justified in law in holding that exemption in respect of education as contemplated in section 5(1)(xii) of the Act can be extended to maintenance also ? (4) Whether, in the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered document was executed by the donor. But even delivery of possession was given about eleven months after the marriage of the daughter. Only one document was executed by the assessee in September, 1964, covering all items of properties gifted to his wife, daughter and son. In such a situation, it was not possible to hold that the gift to the daughter was on the occasion of her marriage. As I have said above, the only basis of this finding in the judgment of the Tribunal is the assessee's promise to make a gift to his daughter. This could not be held in the eye of law to be a gift to the daughter-even oral gift on the occasion of her marriage. I would, therefore, answer the first question in the negative, against the assessee and in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to be adhered to, when there is nothing, or not enough, to displace it." Of course, this observation was made to repel the argument that the word "children" used in a will meant and included grand-children also. But I have respectfully adopted the definition given by the Lord Chancellor as, in my opinion, it is aptly applicable to the term used in section 5(1)(xii). Here also "children" means issue of the first generation, and this primary sense ought to be adhered to when there is nothing, or not enough, to displace it. Surely, the fetter of age is not sufficient to take an issue of the first generation out of the term "children" in the section. To the same effect was the observation in Atkinson, In re: Pybus v. Boyd. Younger J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by a person must be for the education of his child in order to get exemption under section 5(1)(xii). Undoubtedly, gifts for the purpose of meeting the expenses of education of the child cannot mean merely the expenses of paying the tuition fees in educational institutions or of purchasing books. It must mean all necessary expenses connected with the education of the child. In a given case lodging and boarding may be the expenses for the education, in another case it may not be. If the child is living with the assessee, boarding with him, then gifts made for the education of such a child may not include his boarding and lodging charges. But if the child is sent outside home, say, he lives in a hostel, then all expenses incurred in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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