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Section 10 of the Estate Duty Act - Gifts whenever made where donor not entirely excluded Deceased and his wife were partners in a firm - Various amounts were withdrawn by deceased from capital account of partnership firm and was gifted to his wife as they had been credited to her account in partnership on next day - Whether, since, aforesaid amounts withdrawn and gifted to wife were not amounts exclusively in hands of deceased, amounts so credited into wife's account could not be included in deceased's estate as property passing or deemed to pass on his death under section 10 - Held, yes FACTS The deceased and his wife were partners in a firm. Various amounts withdrawn by deceased were withdrawn from the capital account of the partnership and each item after withdrawal from the capital account was gifted to his wife the next day as they had been credited to her account in the partnership account on the next day. The amounts so credited were included in the estate of his deceased as property passing on his death under section 10. On reference: HELD It was clear from the facts of the case the amounts, which were withdrawn from the capital account of the partnership and gifted to wife were not the amount exclusively in the hands of deceased and in view of these facts the amount so credited into the account of wife could not be included in the estate of the deceased as property passing or deemed to pass on his death under section 10. Note: The case has been decided in favour of the accountable person. CASES REFERRED TO Addanki Narayanappa v. Bhaskara Krishnappa AIR 1966 SC 1300 and Munro v. Commr. of stamp of duties [1934] AC 61; 2EDC 462 (PC). JUDGMENT G.L. Oza, J.-This reference under s. 64(1) of the E.D. Act came up for hearing before us earlier and by our judgment dated 25th of January, 1978 [reported in [1978] 113 ITR 885 (MP)], we held that, to answer the reference, the statement of case submitted by the Tribunal was not sufficient, as the statement of case did not show as to from what account the amounts were withdrawn and gifted to Frenibai. Now, an additional statement has been submitted by the Tribunal, which shows that on the respective dates the…

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