Educational gift exemption under Gift-tax law is not defeated by age, independence, or a mother's status as donor.

Section 5(1)(xii) of the Gift-tax Act, 1958 exempts gifts made for the education of the donor's children, subject to the amount being reasonable in the circumstances. The provision does not make the donee's age, financial independence, or dependency on the donor a relevant disqualifying factor, and it does not require the donor to be the father rather than the mother. The text notes that the absence of express dependence language, unlike other exemption clauses, shows that no such condition was intended. On the facts discussed, the gift was treated as for educational purposes and reasonable in amount, so exemption was available.

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Issues: Whether the gift of Rs. 1,25,000 made for the education of the assessee's child qualified for exemption under section 5(1)(xii) of the Gift-tax Act, 1958, and whether the donee's age, financial independence, or the fact that the donor was the mother instead of the father could defeat the claim.

Analysis: Section 5(1)(xii) exempts gifts made for the education of the donor's children to the extent the amount is proved to be reasonable having regard to the circumstances of the case. The term "children" is not defined in the Gift-tax Act, 1958, and the clause does not make age a relevant factor. The provision also contains no requirement that the donor must be the father, and it does not introduce any condition that the donee must be dependent on the donor. The reasoning drawn from clauses such as section 5(1)(vii) and section 5(1)(ix), which expressly refer to dependence, showed that such a requirement was deliberately omitted from clause (xii). The financial resources of the donee were therefore not a negative factor. On the facts, the gift was found to be for educational purposes and reasonable in amount.

Conclusion: The assessee was entitled to exemption under section 5(1)(xii) of the Gift-tax Act, 1958, and the disallowance was unsustainable.

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