1991 (5) TMI 89 - AT - Income Tax

Summary

Issues:
Determining deceased's domicile at the time of death for inclusion/exclusion of movable property in estate value.

Analysis:
The judgment revolves around the question of the deceased's domicile at the time of his death and whether the movable property in the UK should be included in the estate value. Late Sri C.S. Gandhi, born in Morvi, migrated to Kenya and acquired British citizenship. The deceased had two sons, one in India and one in the UK, indicating his connections to both countries. The widow filed the estate account, including various assets but excluding the movable property in the UK. The ACED and CED(A) included the UK property in the estate value, considering the deceased's domicile in India. The appellant argued that the deceased was not domiciled in India at the time of his death, emphasizing his life span, actions, and movements.

The legal analysis delves into the concept of domicile under the Estate Duty Act, emphasizing that a person can have only one domicile for succession to movable property. The judgment clarifies that domicile is distinct from citizenship and residence, focusing on civil rights governed by the law of the domicile country. The deceased's domicile of origin prevails unless a new domicile is acquired, which can be done by choice. The judgment highlights the deceased's migration to Kenya, acquisition of British citizenship, and establishment of connections in the UK, indicating a new domicile outside India.

The judgment evaluates the deceased's actions, including the purchase of a plot in India and investments there, but emphasizes that these do not prove an intention to regain Indian domicile. The court concludes that the deceased had acquired a new domicile in the UK by taking up fixed habitation there, despite brief stays in India. The judgment emphasizes the deceased's conduct and intentions, ultimately ruling that the movable property in the UK should not be included in the estate value. The decision allows the appeal, deleting the addition of the UK property in the estate value.