Judgment

SHAH, J.: By our order dated 1-1-1969, we directed the Income-tax Appellate Tribunal to submit a supplementary statement of the case together with a copy of the deed of gift dated February 3, 1960 executed by the respondent. The Tribunal has submitted the supplementary statement of the case together with a copy of the deed of gift executed by the respondent on February 3, 1960.

2. The respondent is a medical practitioner. By the deed dated February 3, 1960 he has given to his son Thomas four items of property: (1) one-fifth share in cardamom estate valued at Rs. 3,030.80; (2) 1.38 cents of garden land valued at Rs. 4,500; (3) G. K. Hospital Building erected on the garden land valued at Rs. 17,250; and (4) Othi rights valued at Rs. 6,000.

3. In response to a notice under Section 13(2) of the Gift Tax Act 18 of 1958 the assessee filed a return for the assessment year 1960-61 disclosing taxable gifts of property valued at Rupees 27,251. But he claimed exemption in respect of Item No. (2), i. e. the garden land. In the course of the hearing the respondent claimed that the G. K. Hospital Building Item No. (3) was also exempt from liability to gift-tax because of Section 5(1)(xiv)