Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 1976 (9) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1976 (9) TMI 43 - SC - Indian LawsWhether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of ₹ 2,70,000 is not includible in the estate of the deceased under section 10 of the Estate Duty Act ? Held that:- In the light of the finding that the deceased transferred six-sevenths share in the business in favour of the sons and retained only one-seventh share, no question can possibly arise for the inclusion of the said six-sevenths share or of the amount of ₹ 2,70,000 in the estate of the deceased. The transfer of ₹ 2,70,000 by the decased in favour of his sons was not in cash but was by means of book entries. The transfer of that amount was a part of the scheme, as stated above, to transfer six-sevenths share in the business in favour of the sons. There was no absolute transfer of ₹ 2,70,000 in favour of the sons but the transfer was made subject to the condition that the sons would use it as capital, not for any benefit of the deceased donor but for each of them becoming entitled to one-seventh share in the business. No benefit of any kind was enjoyed by way of possession or otherwise by the deceased under the gift of the subject-matter of the gift. Whatever benefit was enjoyed by the deceased subsequent to the date of the gift was on account of the fact that he held one-seventh share in the business, which share he retained throughout and never parted with. No extra benefit was also conferred under the deed of partnership upon the deceased although some extra benefit was conferred upon two of the major sons in the form of remuneration because of their active and full participation in the business. Keeping in view the position of law discussed earlier, it is plain that the facts of the case would not fall within the ambit of section 10 of the Act. Agree with the High Court that the question referred to by the Tribunal should be answered in favour of the accountable persons and against the revenue
|