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ORDER (Order of reference to Full Bench) (3rd November, 1970) Shri Jaishi Ram died on October 23, 1961, leaving behind his wife, four sons and three daughters. The deceased and his sons constituted a joint Hindu family governed by the Mitakshara School of Hindu law, and the family possessed movable and immovable properties. In April and May, 1958, Shri Jaishi Ram made gifts of Rs. 20,000 each in favour of his son, Jagdish Chand Mehra and his four daughters-in-law. The total amount of these gifts was Rs. 1 lakh. These amounts were thereafter invested by the donees in the firm in which Shri Jaishi Ram was a partner. On these facts, a question has arisen whether the sum of Rs. 1 lakh, which had been gifted by Shri Jaishi Ram in favour of his son, Jagdish Chand Mehra, and his four daughters-in-law, can be deemed to have passed on his death as his estate in terms of section 10 of the Estate Duty Act, 1953 (hereinafter called "the Act"). On behalf of the Controller of Estate Duty, the petitioner in this case, it has been stated that this question of law is covered by the judgment of my learned brother, D.K. Mahajan J., and S.S. Sandhawalia J., in Controller of Estate Duty v. Ronaq Ram Bakshi Ram Gupta [1970]76 ITR 682 (Punj.), which is correct, but the learned counsel for the respondent respectfully submits that that case has not been correctly decided and that decision requires reconsideration. The learned judges followed the decisions of the Gujarat High Court in Smt. Shantaben S. Kapadia v. Controller of Estate Duty [1969] 73 ITR 171 and Controller of Estate Duty v. Chandravadan Amratlal Bhatt [1969] 73 ITR 416 , which were delivered by the same Bench. In these cases, it was held that as the subject-matter of the gift was made available to the partnership in which the deceased had an interest as a partner and placed at its disposal, the deceased was not entirely excluded from the subject-matter of the gifts, and hence the provisions of section 10 applied to the cases. The learned judges in support of their view relied on the decision of the Privy Council in Clifford John Chick v. Commissioner of Stamp Duties [1958] AC 435; [1959] 37 ITR (ED) 89; 3 EDC 915 (PC),…

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