1977 (3) TMI 41

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to be taken note of in determining what would be the reasonable gift for the purpose of education of the donees under section 5(1)(xii) of the Gift-tax Act, 1958 ? " By four documents all dated December 1, 1969, the assessee made gifts of his immovable properties to his four children, viz., (1) Ranjit, studying in the IVth Standard, (2) Eapen studying in the S.S.L.C. Class, (3) George, studying for B.Sc., and (4) Miss. Annie John, studying for B.A. The assessee filed a gift-tax return wherein he showed the valuation of his property at Rs. 1,74,080. The entire sum was claimed to be exempted under section 5(1)(xii) of the Gift-tax Act, on the ground that the gifts were for the education of his children. That they were to meet the education....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lance of Rs. 1,40,100 was taxed for the purpose of gift-tax. On appeal, the Appellate Assistant Commissioner enhanced the estimated amount required for educational purpose of all the donees to Rs. 1,69,080. He also reduced the valuation. As regards the claim for exemption he agreed with the assessee that the Gift-tax Officer erred in taking into account the income from the gifted properties. He was of the view that the income from the gifted properties is not an element forming part of " the circumstances of the case " to be taken into account for determining the reasonable amount allowable under section 5(1)(xii). There was a further appeal by the department to the Appellate Tribunal. The contention of the department was that the income fr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... determined.--(1) The value of any property other than cash transferred by way of gift shall, subject to the provisions of sub-sections (2) and (3), be estimated to be the price which in the opinion of the Gift-tax Officer it would fetch if sold in the open market on the date of which the gift was made. (2) Where a person makes a gift which is not revocable for a specified period, the value of the property gifted shall be the capitalised value of the income from the property gifted during the period for which the gift is not revocable. (3) Where the value of any property cannot be estimated under sub-section (1) because it is not saleable in the open market, the value shall be determined in the prescribed manner. " The contention o....