TMI Blog1966 (9) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... divided into three parts of four annas, two annas and two annas, respectively, and the two shares of two annas each in the capital were transferred to the accounts of the two sons of the deceased, viz., S. Aswathanarayana Setty and S. Venkateshiah. The shares so transferred to the accounts of the sons amounted to Rs. 28,796 each. With effect from July 1, 1954, the partnership consisted of the deceased, his two sons and Raja Ramakrishnaiah and his son, Raja Sanjiviah, the profit-sharing ratio being four annas for the deceased, two annas each for his two sons, and four annas each for Ramakrishnaiah and his son. A fresh partnership deed was duly drawn up on this basis and this re-constituted firm continued to exist till the death of the decea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision in Chick's case, held that the property gifted by the deceased to his sons was not retained by them to the entire exclusion of the deceased or of any benefit to him. He, therefore, confirmed the addition of the amount of Rs. 57,594 to the value of the estate of the deceased. The order of the Appellate Controller is appendix "C" and forms part of the statement. Against this order of the Appellate Controller, the accountable persons preferred an appeal before the Tribunal. It was contended on their behalf that the admission of the two sons of the deceased into the partnership which was already in existence merely increased the number of partners in the firm and that all the partners in the enlarged firm were governed by the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r adding a sum of Rs. 57,594 in the computation of the estate left. The copy of order of the Tribunal is appendix "D" and forms part of the statement. This order of the Tribunal was subsequently rectified by substituting the figure of Rs. 73,695 for the figure Rs. 57,594. The order of the Tribunal in the Misc. Application in E.D.A. No. 77 of 1962-63 dated November 4, 1964, is appendix "E" and forms part of the statement. The following question is referred : "Whether, on the facts and in the circumstances of the case, the sum of Rs. 73,695 is not to be included in the computation of the estate left by the deceased?" [After setting out the statement of case as above, HEGDE J. continued.] This is a reference under section 64(1) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) that bona fide possession and enjoyment of that property was not immediately assumed by the donee ; and (2) thenceforward retained to the entire exclusion of the donor or of any benefit to him by contract or otherwise. In the instant case, gifts made were shares in an existing firm. The firm in question continued to be in existence even after the gifts, till the date of the death of the deceased, Subbiah. It is not denied that ever since the gift, the profits accruing from the shares gifted to the two sons of Subbiah were being paid to the donees. All the partners of the firm including the deceased were in management of the firm as partners. In these circumstances, the possession that the donees could have taken in pursuance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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