Law:

Section:

Section 5 of the Estate Duty Act, 1953 – Property passing on death – Certain sites had been purchased in name of deceased's wife out of joint earnings of husband and wife and construction was put upon them – Income from these properties was not credited in joint account of deceased and his wife and said income was assessed only in hands of wife – Even during life time of deceased, wife had settled one of properties in favour of her son and deceased had not joined in execution of settlement deed – Whether on facts, it could be held that deceased had no beneficial interest in properties in question and, therefore, they did not pass on death of deceased – Held, yes FACTS Certain sites had been purchased in the name of the deceased's wife out of the joint earnings of the husband and wife and the constructions had been put upon them. During life time of deceased one of the properties was alone settled by the deceased's wife in favour of the her son. The income from the properties was assessed in the hands of the wife. The Assistant Controller brought 50 per cent of the value of these properties in the dutiable estate of the deceased on the ground that he owned 50 per cent beneficial interest in the said properties. However, the Appellate Controller deleted the 50 per cent value of these properties holding that the entire properties belonged to the wife of the deceased. The Tribunal held that the deceased had no beneficial interest whatever in the two properties in question and that, therefore, the order of the Appellate Controller was correct. On reference : HELD The admitted fact was that the income from the two properties in question was assessed only in the hands of the deceased's wife and even a portion of the same was not assessed in the hands of the deceased. The Tribunal also had recorded a finding that there was no material to show that the income from the properties had been credited in the joint bank account maintained by the deceased and his wife and that the deceased enjoyed the usufruct of the income form the properties. The third aspect to be taken note of was that even during the life time of the deceased when his wife settled one of the properties in…

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