Marriage exemption and education-linked gift tax relief are confined to the statutory purpose, not separate maintenance support.

A gift of land to a daughter did not qualify for the marriage exemption because the transfer was not made on the occasion of the marriage itself, but later by delivery of possession and a registered deed. The term "children" in the education exemption was construed broadly to include a son, without limiting it to minors. However, the statutory exemption for gifts made for education did not extend to maintenance as a separate head, though incidental boarding and lodging may form part of education in a proper case. Where a gift to a son served both education and maintenance, only the portion reasonably attributable to education was exempt.

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Issues: (i) whether the gift of land to the assessee's daughter was exempt under section 5(1)(vii) of the Gift-tax Act, 1958 as a gift made on the occasion of her marriage; (ii) whether the assessee's son fell within the meaning of "children" in section 5(1)(xii); (iii) whether exemption for gifts made for education under section 5(1)(xii) extends to maintenance also; and (iv) whether the gift in favour of the son was exempt under section 5(1)(xii), and if so to what extent.

Issue (i): whether the gift of land to the assessee's daughter was exempt under section 5(1)(vii) of the Gift-tax Act, 1958 as a gift made on the occasion of her marriage

Analysis: The exemption required a gift to a relative dependent upon the donor for support and maintenance, made on the occasion of the relative's marriage, subject to the statutory monetary limit. A mere promise to make a gift later could not be treated as an oral gift. The facts showed that possession was delivered long after the marriage and the registered deed was executed even later. On those facts, the gift could not be treated as one made on the occasion of the daughter's marriage.

Conclusion: The exemption under section 5(1)(vii) was not available; this issue was decided against the assessee and in favour of the Revenue.

Issue (ii): whether the assessee's son fell within the meaning of "children" in section 5(1)(xii)

Analysis: The word "children" was construed in its primary sense as offspring of the first generation. The provision did not confine the term to minor children, and there was no basis to read into it an age restriction. The son therefore answered the description of a child for the purpose of the section.

Conclusion: The assessee's son was a "child" within section 5(1)(xii); this issue was decided in favour of the assessee.

Issue (iii): whether exemption for gifts made for education under section 5(1)(xii) extends to maintenance also

Analysis: The statutory exemption was confined to gifts made for the education of children. Education was understood to cover all necessary educational expenses, and in a suitable case could include incidental boarding and lodging where those expenses were part of education. But maintenance, as a distinct concept, was not covered merely because it was mentioned in the deed. The provision did not, by itself, extend to maintenance.

Conclusion: Section 5(1)(xii) did not extend to maintenance as such; this issue was decided against the assessee and in favour of the Revenue.

Issue (iv): whether the gift in favour of the son was exempt under section 5(1)(xii), and if so to what extent

Analysis: The gift was made for both education and maintenance. Since maintenance was not exempt, only the part referable to education could qualify. The amount reasonably attributable to education was assessed at half of the sum considered by the authorities below. On that basis, only the educational component could be exempted.

Conclusion: The exemption under section 5(1)(xii) was available only to the extent of Rs. 27,000; this issue was decided partly in favour of the assessee and partly in favour of the Revenue.

Final Conclusion: The reference was answered by rejecting the daughter's claim to exemption, accepting that the son was a child within the statute, declining to extend the education exemption to maintenance, and limiting the son's exemption to the educational component alone.

Ratio Decidendi: For purposes of the Gift-tax Act, a gift qualifies for the marriage exemption only if it is made on the occasion of the marriage itself, and the education exemption covers only expenses properly referable to education, not maintenance as a separate head.

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