Decided on June 26,1982



Per Kum. M. Fatima Beebi, Judicial Member - This appeal by the assessee is directed against the order of the AAC dated 18-11-1980 confirming the gift-tax assessment for the assessment year 1973-74. The main ground urged by the assessee is against the rejection of the claim under Section 5(1) (xii) of the Gift-tax Act, 1958 (the Act). - (1.)
(2.) The assessee, under a document dated 5-12-1972, gifted certain items of immovable properties to his only son who was a MBBS final year student. The property gifted consisted of a building in a plot of about 35 cents, 1.09 acres of garden land and 2.12 acres of wet land. The value of these items was declared in the gift deed as Rs. 10,000. The donor died on 31-1-1975. The done, after graduation from Kerala university, on completing the MBBS course and undergoing house sergeancy for a period of one year, went abroad and had his higher studies and research in Canada. He had taken a degree in MD and had been doing research work in Canada. In response to a notice under Section 16(1) of the Act issued by the GTO, the legal representative of the donor filed a return showing the value of the gifted properties at Rs. 10,000. The assessee claimed that the gift was made solely and exclusively for the purpose of education of the done. There had been no specific recital in the settlement deed that the gift was for educational purposes. The gift was stated to be for the purpose of the donees Abhivridhi. The GTO rejected the claim for exemption, stating that there is nothing in the document in support of the claim. He determined the fair market value of the properties at Rs. 1,03,361 and also estimated the deduction, if any, admissible under Section 5(1) (xii) at Rs. 4,000, being the amount required for completing the MBBS course and the house sergeancy. By the assessment order dated 28-9-179, the value of the taxable gift was fixed at Rs. 98,360 and the tax payable was assessed at Rs. 11,004.
(3.) IN the appeal against the assessment before the AAC, the claim for exemption under Section 5(1) (xii) was reiterated limiting the claim, on furnishing the computation of educational expenses, as under : judgement_8271_tlit0_19820.htm   The AAC agreed with the GTO that the assessee is not eligible for the exemption. The reasons given by the AAC for upholding the assessment order, are that the asset had not at all been used for educational purposes and that the gift is not specified to be used for educational purposes. The appeal was, accordingly, dismissed. The assessee being aggrieved is in further appeal before us.;

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