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TMI Blog1982 (6) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... rk in Canada. 3. 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 donee. 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 donee's '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 surgeoncy. By the assessment order dated 28-9-1979, the value of the taxable gift was fixed at Rs. 98,360 and the tax payable was assessed at Rs. 11,004. 4. 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: &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; Travelling expenses back to India 10,000 --------------- &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s representative placed on record a copy of the order of the Appellate Tribunal, Madras Bench, dated 26-5-1979 in GT Appeal Nos. 15 & 16 (Mad.) of 1978-79 pointing out that even in a case where there had been no recital in the document that the gifts are for education, the Tribunal has held that the gift was for purposes of education, having regard to the facts and attendant circumstances. 6. The departmental representative relying on the orders of the lower authorities, maintained that in the absence of a specific recital in the deed, the gift cannot be construed as one for the purpose of education of the donee and that the expression 'abhivridhi' cannot be understood as including educational needs. It was also pointed out that the assessee before proceeding to Canada, had been working in private hospitals in Kerala and had gone abroad for better employment, and not for higher studies, and even if he had acquired higher qualification while he was abroad, that circumstance cannot be taken into account in determining the extent to which the gift has been proved to be reasonable. The departmental representative relied on the decision in N. Durgaiah v. CGT [1975] 99 ITR 477 (AP) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted, the meaning attributed to the word 'kalakshepam' would include educational needs, and that the gift was made partly for the purpose of education of his son and it was exempt with regard to that part under section 5(1)(xii). The decision relied on by the revenue is distinguishable. It was a case where there was no specific mention of the fact that the house property was gifted to the minor son with a view to provide for his education, nowhere in the document any such reference has been made nor the same can be gathered from the document. As the intention of the donor could not be gathered from the very terms and recitals of the gift deed, it was held that the gift was not entitled to exemption. In the assessee's case, as already noticed, the expression used in the deed has to be understood as including educational needs. We, therefore, hold that the assessee is entitled to the exemption under section 5(1)(xii), to the extent to which the gift is proved to be reasonable having regard to the circumstances of the case. 8. Though the value of the gift has been determined at Rs. 1,03,361 the assessee has limited the claim to an amount of Rs. 29,461. This amount according to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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