Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Gift - Where donor not entirely excluded - Donees took possession of lands gifted by deceased and patta had also been transferred in their names - Assistant controller however, concluded that since deceased had utilised income from lands gifted in his money lending business, he had not been entirely excluded from benefit, possession and enjoyment of properties gifted - He, accordingly held that lands gifted should be deemed to have passed under section 10 and value of said lands was to be included in principal value of estate of deceased - Whether since gifted lands were taken possession of by donees and pattas were also transferred in their names, mere fact that income from gifted lands were credited in individual accounts of donees in books of account maintained by deceased, was not sufficient to establish that donees did not intend to retain possession and enjoyment of gifted properties exclusively for themselves - Held, yes - Whether, moreover, since benefit derived by deceased by utilising income from gifted lands in his money lending business was not referable to gifts made by him, provisions of section 10 could not be invoked to include value of gifted lands in principal value of estate of deceased - Held, yes FACTS The deceased had gifted certain lands from time of time to his grandchildren, great-grandchildren and to one RC. The donees had assumed possession of the lands gifted to them and the pattas for those lands were transferred in the respective names of the donees. The lands were leased out and the income from those lands were periodically credited to the accounts of the donees in the books of the deceased and they were at the disposal of the deceased and utilised by him in his money-lending business. The Assistant Controller came to the conclusion that the deceased had utilised the income from the lands gifted in his money-lending business and the deceased had not been entirely excluded from benefit, possession and enjoyment of the properties gifted and the lands gifted should, therefore, be deemed to have passed under section 10 and the value of the lands was included in the principal value of the…

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