Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Gifts whenever made where donor not entirely excluded - Deceased was sole proprietor of his business - With a view to convert that business into a partnership with his six sons, he made book entries of transfer of certain amounts to his sons from his personal account which were credited to sons accounts - Subsequently, partnership deed was executed constituting partnership between deceased and his sons and amounts transferred to each of sons was treated as their share of capital - Share of deceased and each of his six sons was one-seventh in profits of partnership till date of death of deceased - Besides, no extra benefit was conferred under deed of partnership upon deceased - Whether, on aforesaid facts, upon death of deceased, amounts transferred to credit of sons could not be included in estate passing on his death under section 10 - Held, yes FACTS RV died on 18-11-1960. He was the proprietor of two business concerns. With a view to convert the business of the aforesaid two concerns into partnership business with his four major sons, he transferred a sum of Rs. 45,000 from his personal account to the credit of each of his four adult sons on 12-9-1955. On 17-9-1955, a partnership deed was executed by the deceased and his four adult sons constituting a partnership firm. The sum of Rs. 45,000 transferred by the deceased to each of his four sons were treated as their share capital in the partnership business. A day later, two minor sons of the deceased were also admitted to the benefits of the said partnership. Agreement dated 18-9-1955, was executed in this connection The deceased also transferred on 18-9-1955, a sum of Rs. 45,000 from his personal account in the firm to each of his two minor sons. The share of deceased and each of his sons was one-seventh in the profits of the partnership till the date of death of the deceased. In the estate duty assessment, the Assistant Controller, by applying section 10, included the capital in the accounts of the sons of the deceased amounting to Rs. 2,70,000 (Rs. 45,000 X 6) in the principle value of the estate. On appeal, the Appellate Controller sustained the inclusion of Rs.…

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