Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Gift whenever made where donor not entirely excluded - Deceased transferred certain amount to his wife by way of book entries in account books of firm in which he was partner more than two years before his death - A part of gifted amount was withdrawn by donee and balance remained with firm - On death of deceased said balance amount was included in dutiable estate under section 10 on ground that donor had not entirely excluded himself from gifted property - Whether it could not be said that donor was not excluded from property gifted merely because donee did not enforce her claim and, donor continued to run partnership business as from before - Held, yes - Whether, therefore, provisions of section 10 were not applicable and property covered by gift could not be deemed to pass on death of donor - Held, yes FACTS On 30-12-1951, 'K' gifted a sum of Rs. 51,000 to his wife by book entries in the account books of the firm in which he was partner. She had withdrawn Rs. 2437 on 1-1-1954 leaving a balance of Rs. 48,513. 'K' expired on 21-7-1957. In the estate duty assessment the amount of Rs. 48,513 was included in the estate of the deceased as property passing or deemed to pass on his death. The Assistant Controller was of the view that there was no evidence to show that gift was accepted by the donee and mere transfer by book entries could not constitute a valid and completed gift of the said amount which remained invested in the firm without payment of interest. On appeal, the Board held that since the amount remained invested in the firm and no interest was being paid, it could not be said that the deceased had entirely excluded himself from the gifted property or that the donee had taken possession of the property to the entire exclusion of the deceased or of any benefit to him. The inclusion was, therefore, confirmed. On reference : HELD The view taken by Board, that no valid gift can be effected by making transfer entries in the books of account was clearly not sustainable. Subsequent to the transfer of the amount, the K's wife operated upon this account and on 1-1-1954, she withdrew a sum of Rs. 2,487 leaving a balance…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492