Judgment :- C.N. Ramachandran Nair, J. The question arising in this gift tax appeal filed by the Revenue against the appellate order of the Tribunal is whether the late assessee whose legal representatives represent him in this appeal, was entitled to gift tax exemption under Section 5(1)(iib) of the Gift Tax Act (hereinafter called “the Act”) in respect of the consideration paid to the seller from NRI Accounts for purchase of property in the name of late assessee’s wife and children. The late assessee during his lifetime purchased immovable property in the joint names of himself, his wife and children. Consideration for the purchase was made through cheques and demand drafts drawn from NRI accounts. Even though the gift tax exemption claimed was disallowed by the Assessing Officer on the ground that late assessee was not a person resident outside India, that issue was later settled in favour of the assessee vide judgment of the Supreme Court referred to in the order of the Tribunal wherein the Supreme Court held that the assessee was entitled to the status “person resident outside India”. Before us, Senior counsel for the Revenue contended that even if late assesses was a non-resident Indian, he is not entitled to exemption from gift tax under Section 5 (1)(iib) of the Act because gift given is in the form of immovable property purchased by the assessee in the name of himself and his wife and children. Counsel appearing for the respondent contended that since the consideration for purchase of property is money sourced from NRI accounts maintained by the assessee, such gift is also covered by Section 5(1)(iib) of the Act. in order to appreciate the contentions raised, we have to look into the scope of section 5(1)(iib) and for easy reference, the said Section is extracted hereunder: “s.5. in order to appreciate the contentions raised, we have to look into the scope of section 5(1)(iib) and for easy reference, the said Section is extracted hereunder: “s.5. Exemption in respect of certain gifts: (1) Gift-tax shall not be charged under this Act in respect of gifts made by any person— (i) of immovable property situate outside the territories to which this Act extends; (ii) of movable property situate outside the said territories unless the person— (a) being an individual, is a citizen of India and is ordinarily resident in the said territories, or (b) not being an individual, is resident in the said territories during the previous year in which the gift is made; (iia) being an individual who is not resident in India, to any person resident in India, of foreign currency or other foreign exchange as defined respectively, in clause (c) and clause (d) of section 2 of the Foreign Exchange Regulation Act, 1947 (7 of 1947) remitted from a country outside India in accordance with the provisions of the said Act and any rules made there under, during the period, commencing on the 26th day of October, 1965, and ending on the 28th day of February, 1966, or such later date as the Central Government may, by notification in the Official Gazettee, specify in this behalf. (iib) being a person resident outside India, out of the moneys standing to his credit in a Non-resident (External) Account in any bank in India in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 if 1973), and any rules made there under. Explanation:- For the purposes of this clause, “person resident outside India” has the meaning assigned to it in clause (q) of section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973); ………” In fact it is clear from Section 5(1) that gift tax exemption is provided with reference to items of property gifted. While clause (i) of Section 5(1) provides for exemption of gift of immovable property situate outside India and clause (ii) provides for exemption of movable property situate outside India, clause (iia) provides for foreign exchange/currency gift. The gift referred under clause (iib) of Section 5(1) is nothing but money gift and the condition for exemption is that the gift should flow from the non-resident (external) account maintained in a Bank by a person resident outside India. The gift referred under clause (iib) of Section 5(1) is nothing but money gift and the condition for exemption is that the gift should flow from the non-resident (external) account maintained in a Bank by a person resident outside India. In other words, the two conditions for exemption are that the donor should be a non-resident and the gif should be from out of money standing in his non-resident account in any Bank in India. In this case admittedly the assessee did not give any gift of money in the form of cheque or demand draft to his wife or children from the non-resident external accounts maintained by him. However, he purchased property in the form of land and building in the name of himself and his wife and children. However, for the property jointly purchased by the assessee, his wife and children, sale consideration was paid by him from non-resident accounts maintained by him. The question is whether the payment of sale consideration for the property purchased in the name of wife and children amounts to gift and if so, such gift is entitled to exemption under section 5(1)(iib) for the reason that money paid was from NRI accounts maintained by the assessee. There can be no dispute that the transaction is a gift in as much as on account of sale consideration paid by the assessee, his wife and children as contended by standing Counsel for the department. On the other hand, assessee paid purchase consideration attributable for acquisition of right in property by assessee’s wife and children. We, therefore, reject her department’s contention and hold that the gift is nothing but the consideration in money paid by the assessee on behalf of the other purchasers of the property along with him, who are his wife and children. Since all the authorities including the Tribunal have found that the source of fund for purchase of the property is from the several NRI accounts maintained by the non-resident assessee in Indian Banks, we are of the view that the sale consideration paid on behalf of the other purchasers of property namely, wife and children of the assessee also in a NRI gift falling under Section 5(1)(iib) of the Act. In this view of the matter, we dismiss the appeal.