TaxTMI 
TaxTMI 
1971 (8) TMI 61
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....f the Estate Duty Act?" The deceased, Kasturchand Kundanmull, was one of the two partners of the firm, Messrs. Kasturchand Kundanmull, the other partner being his son, Pukraj. On November 6, 1953, the deceased gifted a total sum of Rs. 35,000 to his three grand-daughters who were then minors. These gifts were made by means of transfer entries in the books of the firm by debiting the amount in the personal account of the deceased and crediting the respective amounts in the accounts of the three donees. The deceased also executed a trust deed, dated March 31, 1954, under which he appointed his son, Pukraj, to be the trustee for the amounts gifted by him. The trust deed authorised the said trustee to withdraw the gifted amounts from the firm ....
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....entire exclusion of the donor or of any benefit to him by contract or otherwise :" (Provisos omitted) The above provision is similar to section 102(2)(d) of the Stamp Duties Act, 1920-56 (New South Wales), which came up for consideration before the Judicial Committee of the Privy Council in Clifford John Chick v. Commissioner of Stamp Duties. Lord Simonds, who delivered the judgment of the Board, has stated that: "Where the question is whether the donor has been entirely excluded from the subject-matter of the gift, that is the single fact to be determined. If he has not been so excluded, the eye need look no further to see whether his non-exclusion has been advantageous or otherwise to the donee." In the said case, the deceased transfe....
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....d in computing the value of the father's estate for the purpose of the death duty. The principles laid down in Chick's case were followed by the Gujarat High Court in Smt. Shantaben S. Kapadia v. Controller of Estate Duty and Controller of Estate Duty v. Chandravadan Amratlal Bhatt, and by the Punjab High Court in Controller of Estate Duty v. Ronaq Ram Bakshi Ram Gupta and applied to facts similar to the instant case. Sri S. P. Bhat, learned counsel for the accountable person, submitted, that the facts in the instant case are distinguishable from the facts in Chick's case and, therefore, the principles laid down therein should not be applied. He urged that the relationship between the donees represented by the trustee and the firm is one ....