1. Under S.26 (1) of the Gift Tax Act, 18 of 1958, the Income-tax Appellate Tribunal, Madras Branch has stated the case and referred the following question of law for our decision:

"whether on the facts and in the circumstances of the case the assessee was entitled to the exemption in respect of G.K. Hospital and the adjoining land of 1.38 cents under S.5 (1) (xiv) of the Gift Tax Act?"

2. The facts and circumstances of the case on which the above question of law falls to be answered by us are these:

The assessee Dr. George Kuruvilla is a practising doctor. By a deed of settlement dated 3rd February, 1960, he gifted some of his properties. Among these, the two items, with which we are concerned, were given away to one of the sons, Thomas Kuruvilla aged 34 years. The donee Thomas Kuruvilla passed his M.B.B.S. examination in December 1959 and joined his father's profession in July 1960.

3. S.5(1)(xiv) of the Gift Tax Act, on the basis of which the question of law falls to be determined, is as follows:

"(1) Gift Tax shall not be charged under this Act in respect of gifts made by any person

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(xiv) in the course of carrying on a business, profession or vocation to the extent t