SHETH K M Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) THREE questions of law have been referred to this Court by the Tribunal in this reference at the instance of the assessee. The question read as under:

(2.) SHRI Mehta, learned counsel for the assessee, has fairly admitted that the first two questions are covered by this Court's decision in the assessee's own cases--K.M. Sheth vs. CIT 1977 CTR (Bom) 314 : (1977) 107 ITR 45 (Bom) and CIT vs. K.M. Sheth (1986) 50 CTR (Bom) 210 : (1986) 160 ITR 814 (Bom). Accordingly, we answer the first two questions in the affirmative and in favour of the Revenue.

(3.) THE exemption is thus available to the extent to which the gifts are proved to the satisfaction of the GTO as being reasonable having regard to the circumstances of the case. On the facts and material on record, it is not possible to agree with Shri Mehta that any portion of the gift is in fact for the education of the child. Accordingly, on the facts before us, we answer the third question of law also in the affirmative and in favour of the Revenue. No order as to costs.