1970 (4) TMI 60

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..... nal to submit a supplementary statement of the case together with a copy of the deed of gift dated February 3, 1960, executed by the respondent. The Tribunal has submitted the supplementary statement of the case together with a copy of the deed of gift executed by the respondent on February 3, 1960. The respondent is a medical practitioner. By the deed dated February 3, 1960, he has given to his .....

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..... s, had graduated in the medical science at an examination held in December, 1959, and had joined the respondent's prefession as a house surgeon in July, 1960, and on that account the gifts in respect of items Nos. (2) and (3) were exempt from liability to tax. The Gift-tax Officer rejected the claim. The Appellate Assistant Commissioner confirmed the order of the Gift-tax Officer. The Appellate Tr .....

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..... ...... (xiv) in the course of carrying on a business, profession or vocation, to the extent to which the gift is proved to the satisfaction of the Gift-tax Officer to have been made bona fide for the purpose of such business, profession or vocation. " The respondent practises the profession of medicine. A few months after the deed of gift, his son, Thomas, also qualified to be a medical practi .....

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..... rying on the profession. Now, the next condition is that it should have been made for the purpose of the profession. It is not the case of the department that the gift property had been used for any purpose other than what it had been put to while it was with the donor... " The High Court observed : " We feel it difficult to resist the conclusion that in the background and circumstances, the g .....

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..... ich it was used by the donor. Without deciding whether the test of " commercial expediency " is strictly appropriate to the claim for exemption under section 5(1)(xiv), we are of the view that there is no evidence on the record to prove that the gift to Thomas was " in the course of carrying on the business " of the donor, and " for the purpose of the business. " The appeal is allowed and the or .....

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