Law: Estate Duty Act, 1953

Section: 10,9

Law: Estate Duty Act, 1953

Section: 10,9

Section 10 of the Estate Duty Act, 1953 - Gifts whenever made where doner not entirely excluded - Deceased donated house properties to his sons and daughters - Deceased had not taken any steps to mutate those properties in favour of donees - Deceased prior to his death and after making of gift was also living in that house and gifted property remained in his name - Income from those house properties were utilised for purpose of family including deceased, donor - Whether in such circumstances it could be held that donees had not immediately assumed possession of properties and thenceforward retained same to entire exclusion of deceased and, consequently, provisions of section 10 were attracted - Held, yes FACTS The applicant who was a son of the deceased, submitted a statement of account before the Assistant Controller, declaring the principal value of the estate of the deceased. It was claimed before the Assistant Controller that the deceased had transferred six house properties to his sons and daughters by oral gift known as hiba under Mohammadan law, more than two years before the death of the deceased and as such the properties should not be included in the estate passing on the death of the deceased. The Assistant controller held that there was no delivery of possession of the properties gifted so as to make the gifts valid as hiba. It was also stated that there were no accounts to show how the rents realised from the house properties were actually utilised. The Assistant Controller further held that, even assuming that all these properties were validly gifted by the deceased, the properties should be deemed to pass on the death of the deceased under the provisions of section 10, since the deceased could not be said to have been entirely excluded from the benefits from the properties gifted by him. He, accordingly, included those properties in the estate of the deceased. On appeal, the Board, while holding that the gift was valid as it had been completed two years prior to the death of the deceased, and as such the properties gifted were outside the scope of section 9, came to the conclusion that the donees did not enjoy the properties to the entire…

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