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Issues:
1. Inclusion of the value of lands gifted by the deceased under the Estate Duty Act. 2. Inclusion of the lineal descendant's share in the ancestral property under the Estate Duty Act. Analysis: Issue 1: The deceased had gifted various parcels of land to different individuals through settlement deeds. The Asst. Controller contended that since the deceased utilized the income from the gifted lands in his money-lending business and had not been entirely excluded from benefit, possession, and enjoyment of the properties, the value of the lands should be included in the principal value of the estate under section 10 of the Estate Duty Act. However, the Appellate Controller and the Tribunal disagreed, emphasizing that the donees had assumed possession of the lands, transferred pattas in their names, and could have prevented the deceased from utilizing the income. The Tribunal, citing precedent, held that the deceased's benefit from the income was not directly linked to the gifts, thus excluding the value of the gifted lands from the estate valuation. Issue 2: Regarding the inclusion of the lineal descendant's share in an ancestral property, the Tribunal, following a previous court decision, held that the value of the lineal descendant's share should be excluded from the assessment. The Tribunal's decision aligned with the legal precedent, emphasizing that the value of the lineal descendant's share in the estate should not be included. Consequently, the questions referred to the court were answered in the negative, favoring the assesses, who were also awarded costs. This judgment clarifies the application of the Estate Duty Act concerning the inclusion of gifted property values in the estate valuation and the treatment of ancestral property shares. The decision underscores the importance of actual exclusion of the deceased from possession and enjoyment of gifted properties to determine their inclusion in the estate value, as well as the exclusion of lineal descendant's shares in ancestral properties from assessment under the Act.
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