2001 (1) TMI 75

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.... 52,728 for the assessment year 1976-77. The gifts were made by purchasing rupee draft from banks in Kuala Lumpur. As the gift drafts were purchased in Kuala Lumpur and given to the mother of the assessee in India, exemption was claimed in respect of these gifts under section 5(1)(ii) of the Gift-tax Act, 1958. The Gift-tax Officer denied the exemption claimed. But, on appeal, the Appellate Assistant Commissioner of Income-tax accepted the assessee's contention that the gifts were complete as soon as the foreign money was deposited with the foreign bank with the intention of donating it to the donee in India and that under the Foreign Exchange Regulation, he had no other option but to make the gift through banking channels by entrusing t....

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....he gifts were accepted on behalf of the daughter in Kuala Lumpur itself and the assessee purchased the draft thereafter. The assessee, therefore, contended that the gifts were movable properties situated in a foreign country and the assessee being not ordinarily a resident, was entitled to exemption under section 5(1)(ii) of the Gift-tax Act, 1958. On an earlier occasion, this court in the case of CGT v. S. Raja Ramalingam [1997] 227 ITR 622, had considered whether there was a request made by the donee to the donor in a foreign country to send the gift by draft and by post. This court, in the absence of any request by the donee to the donor to send the draft by post, came to the conclusion that the gift was complete in India where the do....