TMI Blog1982 (7) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... n 10 of the Estate Duty Act, 1953 ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal erred in holding that the sum of Rs. 58,000 (Rupees fifty-eight thousand only), being the value of the goodwill of the business run by the partnership was wrongly included in the principal value of the estate of the deceased partner ? " The facts giving rise to this reference are as follows: The deceased had a proprietary business of the manufacture of bidis. At the end of Samvat year 2011, that is, on Diwali 1957, he transferred an amount of Rs. 1,60,000 each to his son and minor grandson by way of gifts. With effect from the beginning of Samvat year 2012, the said proprietary business of manufacturing bidis was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re were some other additions and adjustments made by the Asst. Controller with which we are not concerned in this reference. On further appeal by the accountable person to the Tribunal, the Tribunal held that merely because a donee of a gifted property invested that property in firm in which the donor was a partner it could not be said that the donor was interested in that property and consequently it could not be said that the property passed to the donee on the death of the donor, provided the requisite period of two years has passed. On this reasoning, the Tribunal allowed the appeal and held that the amount of Rs. 2,82,000 as well as the sum of Rs. 58,000 were wrongly included in the estate of the deceased. In coming to this conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm in which the donor is a partner, then the mere fact of the donor sharing the enjoyment of the benefit in the property is not sufficient for the application of s. 10 of the said Act, unless and until such enjoyment or benefit is clearly referable to the gift, that is, to the parting with such enjoyment or benefit by the donee or permitting the donor to share them out of the bundle of rights gifted in the property. If the possession, enjoyment or benefit of the donor in the property is consistent with the other facts and circumstances of the case, other than those of the factum of the gift, then it cannot be said that the donee had not retained possession and enjoyment of the property to the entire exclusion of the donor or to the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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