Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Gifts whenever made when donor not entirely excluded - Deceased was partner in firm, which consisted of his three sons and a daughter - Firm was carrying on money lending and financing business - Deceased transferred some of his share by adjustment entries to accounts of his daughter and sons - Amount transferred as aforesaid still remain in firm and utilised in business - Whether transfer of aforesaid amount could be said to be property deemed to pass on death of deceased under section 10 and was liable to estate duty - Held, no FACTS The deceased was a partner in a firm. The other partners of the firm consisting of the three sons and daughter of the deceased. The firm was engaged in the business of money lending and financing. On 31-3-1953 and 1-4-1956, the deceased transferred some amount out of his share, by adjustment entries to the accounts of his daughter and three sons. The amounts so transferred by the deceased to his daughter and sons continued to remain in the partnership business subsequent to the transfers till the death of the deceased and were utilised in the firm's money-lending business. The deceased died on 17-10-1962 and the accountable persons while computing the value of estate of the deceased did not include the aforesaid amount, which had been transferred by the deceased to their accounts. However, the Assistant Controller included the aforesaid amount by applying section 10. The Tribunal held that the amount in question did not come within the preview of section 10 and as such was not liable to estate duty. On reference, the High Court upheld the order of the Tribunal. On appeal to the Supreme Court : HELD Following the decision of the Supreme Court in the case of Controller of Estate Duty v. C.R. Ramachandra Gounder [1973] 88 ITR 448, it was held that the order of the High Court was justified. CASE REVIEW Decision of the Madras High Court in Controller of Estate Duty v. N.R. Ramarathnam [1969] 74 ITR 432 affirmed. Note - The case has been decided in favour of the assessee. (Accountable person). CASES REFERRED TO Clifford John Chick v. Commissioner of Stamp Duties [1958] AC 435; [1959] 37 ITR…

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