Law: Estate Duty Act, 1953

Section: 10

Estate Duty Act, 1953-Section 10 -Estate duty-Property deemed to pass on death-Income from properties collected by wife and deposited in bank account of husband-Bank account converted to joint account within two years before death of husband-Other monies of deceased also deposited in joint account Deceased whether excluded from possession and enjoyment of gifted properties-Held yes-Value of gifted properties whether includible in estate of deceased-Held no The deceased had gifted to his wife three house properties and a vacant site, on which also a house was constructed. Thereafter, the wife was collecting rents from the houses and leasing them as and when they fell vacant. The deceased also acquired certain shares in a company in the name of his wife, the source for the investment having been provided by him. The rents from the houses and the dividends from the shares were being credited to a bank account in the sole name of the deceased till `March 12, 1958, when a joint account was opened in the names of the deceased and his wife. The rents received from the houses, the dividends from the shares as well as the pension received by the decased and other amounts were deposited in this joint account. Withdrawals from this account were made by both the deceased and his wife. The deceased died on February 5, 1960. The Assistant Controller of Estate Duty held that in ,as much as the income from the properties gifted by the deceased had been credited to a bank account which was in the name of the deceased and operated by him up to a period within two years of his death, the value of the properties gifted was includible under Section 10 of the Estate Duty Act, 1953. According to him the conversion of the bank account into a joint account would not in any manner prevent the application of Section 10. The Appellate Controller confirmed the applicability of Section 10. The Tribunal, however, allowed the appeal of the accountable person and held that Section 10 was not applicable. The Tribunal found as a fact that the rents from the properties gifted were being collected by the wife and as the amounts deposited by the donor by way of his pension and dividends from shares…

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