TaxTMI 
TaxTMI 
1979 (1) TMI 158
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.... the accounts of the donees in the books of the aforesaid firm. It is seen that in the gift-tax return filed on 16th Oct. 1974 the value of taxable gifts was shown at only Rs. 5,000 i.e. after claiming as exempt gifts to the extent of Rs. 40,000 under s. 5(1)(xii) comprised of gifts to four of the donees, i.e. except Miss Sandra Victoria, and Rs. 5,000 which was the basic exemption. The narration in the assessment order which may give the improvement that exemption was claimed only in the covering letter does not appear to be factually correct. 3. Regarding the donees in respect of whom gifts were claimed to be exempt under s. 5(1) (xii), the relevant particulars furnished in the covering letter to the gift-tax return were as under: 1....
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....ature of the claim. He went on to state that the absence of a narration in the books of accounts of the firm of the purpose of the gift cannot constitute a valid ground for denial of exemption especially as in the return and in the covering letter the claim had been explicitly made and further the return was duly verified. Unless the verification in the return was shown to be false, the AAC held, it would not be correct to deny the exemption under s. 5(1)(xii) of the Gift-tax Act. As far as the reasonableness of the amount is concerned, the AAC mentioned that exemption was not denied by the Gift-tax Officer on the score that the quantum was reasonable. According to the AAC, there was enough material to show that the gifts were made for the ....
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....d. He also submitted that a claim made in a duly verified return stating the purpose of the gift was certainly one item of evidence if the catena of cases relating to treatment of property as H.U.F. property or otherwise is looked to. One such decision relied on was that in 66 ITR 63. His final argument was that the assessee was not the legal guardian of the minors but it was her husband and if the husband chose voluntarily to meet the educational expenses certainly no adverse inference could be drawn against the assessee donor. 8. We have considered the rival submissions s. 5(1) (xii) of the GTO provides for exemption of gifts "for the education of his children to the extent to which the gifts are proved to the satisfaction of the GTO a....
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....s about what each of the donees is doing as on date. The position as under: "1. Miss. ROSE MARIE VICTORIA: The donee is continuing her studies in nursing at the Our Lady Nursing School, St. Joseph Hospital, Dindigal. 2. Miss. YVONNE VICTORIA; The donee was a stipendiary student in higher grade general nursing and mid wifely from 1st January 1973 at the school of Nursing. St. Martha's Hospital, Bangalore. She has completed her studies at the above institution. She proposes to go abroad for higher studies in nursing. 3. Miss. YASMINE VICTORIA: The donee has completed her schooling. She proposes to go abroad for higher studies. 4. Miss. MARYFATHIMA VICTORIA: The donee continues to be a student of the Holy Family Convent....