https://www.taxtmi.com/caselaws?id=38866 For exemption under section 5(1)(xii) of the Gift-tax Act, the market value of the gifted property is first determined under section 6, and tax is computed on that basis. The Act does not permit a further adjustment by treating income earned from the gifted corpus during the donees' education as an additional factor when assessing what is a reasonable gift for education. Although the officer may consider the circumstances of the case, that discretion does not extend to reducing the exemption by reference to post-gift income from the property. The income from the gifted properties was therefore not relevant for the exemption calculation, and the issue was answered in favour of the assessee. en-us Thu, 17 Mar 1977 00:00:00 +0530 Sat, 10 Apr 2010 10:42:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38866 For exemption under section 5(1)(xii) of the Gift-tax Act, the market value of the gifted property is first determined under section 6, and tax is computed on that basis. The Act does not permit a further adjustment by treating income earned from the gifted corpus during the donees' education as an additional factor when assessing what is a reasonable gift for education. Although the officer may consider the circumstances of the case, that discretion does not extend to reducing the exemption by reference to post-gift income from the property. The income from the gifted properties was therefore not relevant for the exemption calculation, and the issue was answered in favour of the assessee. Case-Laws Income Tax Thu, 17 Mar 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38866