Law:

Section:

Section 10 of Estate Duty Act, 1953 - Gifts whenever made where donor not entirely excluded - 'M' made gift of amounts to his son and to his wife, by making debit entries in his account in firm in which he was a partner and corresponding credit entries in donees' account - M's son was later taken as a partner by giving him one-fourth share out of half share of 'M' in that firm On M's death, said amounts were included for purposes of estate duty - Tribunal held that section 10 was not attracted and, therefore, accountable persons were not liable to pay any estate duty on said amounts - High Court upheld Tribunal's findings - Whether when a property is gifted by a donor possession and enjoyment of which is allowed to a partnership firm in which donor is a partner, then mere fact of donor sharing enjoyment or benefit in property is not sufficient for application of section 10 until and unless such enjoyment or benefit is clearly referable to gift, i.e. to parting with such enjoyment of benefit by donee or permitting donor to share them out of bundle or rights gifted in property - Held, yes - Whether in view of aforesaid legal position, no estate duty was chargeable on amounts in question - Held, yes FACTS The deceased 'M' had made gifts of money to his son and to his wife, by making debit entries in the accounts of partnership firm in which he was a partner, and corresponding credits in the donees accounts. M's son was taken in as a partner, by giving him one-fourth share out of the half share of 'M'. On M's death his wife was taken as a partner getting the share of her husband. The revenue authorities held that the said sums were includible for the purposes of estate duty. On appeal, the Tribunal took the view that the provisions of section 10 were not attracted, and, therefore, the accountable persons were not liable to pay any estate duty on aforesaid amounts. On reference, the High Court affirmed the Tribunal's view. On appeal: HELD When a property is gifted by a donor the possession and enjoyment of which is allowed to a partnership firm in which the donor is a partner, then the mere fact of the donor sharing the enjoyment or the benefit in the property is…

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