Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Gifts whenever made where donor not entirely excluded - Deceased gifted cash to minor daughters - Amounts were kept in fixed deposits in joint name of deceased and minor daughters - Fixed deposits with accrued interest were together again and again deposited in said joint names of deceased and each of his daughters - On death of deceased, Tribunal held that said amount was property passing under section 10 and, therefore, liable to be included in principal value of estate - Whether, if intention was to take fixed deposits in name of minors, then it was not necessory to take same in joint names - Held, yes - Whether since fixed deposits were taken in joint names of deceased along with his minor daughters, view taken by Tribunal was right - Held, yes FACTS The deceased gave cash gift of Rs. 10,000 each to his daughters, both of them were minors at the time of the gift and later one became major just a few months prior to the date of death of deceased. The amounts gifted were kept in banks in fixed deposits in the joint names of each of the minor daughters and the donor, payable to either or survivor. The fixed deposit with the accrued interest were together again and again deposited in the said joint names of the deceased and each of his daughters. The principal and interest accrued in each case amounted to Rs. 14,048 and thus the total amounted to Rs. 28,096. The Assistant Controller and the appellate authorities held that the said amount was property passing under section 10 and, therefore, liable to be included in the principal value of the estate. On reference: HELD It was seen from the undisputed facts that the fixed deposits were in the joint names of the deceased and each of the minor daughters. If the intention was to take the fixed deposits in the name of the minors, then it was not necessary to take the same in the joint names. Since the fixed deposits were taken in the joint names of the deceased along with his minor daughters the inclusion of the value of cash gifts of Rs. 10,000 each made by the deceased in favour of the minor daughters by applying the provisions of section 10, was valid in law. Note : The…

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