Law:

Section:

Section 11 of the Estate duty Act, 1953 - Limited interests disposed of within a certain period before death - One 'P' executed a settlement under which certain properties were settled on 'K' without any power of alienation during his life time and on his heirs absolutely after his death - 'K' treated said properties in which he had life interest as joint family properties - Income-tax and Wealth-tax assessments were also made on that basis - After K's death, Assistant Controller relying upon section 7 included entire value of properties in question in dutiable estate of deceased - On appeal, Appellate Controller upheld assessment by reference to section 11 - Tribunal, however, holding that section 11 was not applicable to case, set aside order of Appellate Commissioner - Whether, since, on facts of case it was difficult to say that there was determination of interest of 'K' in sense that he lost whole of interest in favour of another person or that there was a kind of partial surrender in sense that K's interest became limited to any particular fraction of totality of interest, Tribunal was right in holding that assessment based on section 11 could not stand - Held, yes - Whether, therefore, entire value of properties in question was not includible in dutiable estate of deceased (i.e. 'K') - Held, yes FACTS 'P' executed a settlement under which certain properties were settled on 'K' without any power of alienation during his lifetime and on his heirs absolutely after his lifetime. 'K' treated the properties in which he had life interest as joint family properties. Accordingly, he submitted wealth-tax and income-tax returns with reference to the said propertiesor their income, as the case may be, right from the year 1949 on the footing that they were joint family properties. The assessments to income tax were made accordingly. On the death of 'K' in the estate duty proceedings, the accountable person claimed that the properties covered by the settlement deed belonged to a Hindu coparcenary consisting of the deceased and his two minor sons and that, therefore, the cesser of interest of the deceased, viz., 1/3rd share alone, should be subjected to estate duty.…

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