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Section 13 of the estate duty act, 1953-joint investment-Deceased, being absolute owner of certain shares, transferred the same and vested in herself and her sons-On her death, beneficial interest vested in her sons-Whether section 13 attracted-Held, on facts, yes Facts The deceased owned 6,067 shares of DCM. In November, 1971, she divided these shares equally in three blocks and got each block registered jointly in the name of herself and her three sons. The remaining extra share was registered jointly in her name and that of her youngest son. She died on 25-6-1972. The accountable persons claimed that impugned shares were outside the ambit of section 6 since the deceased was not competent to dispose them without the concurrence of the joint owner and substantiated the claim by the company's letter. However, the Assistant Controller held that the impugned shares were deemed to pass on the deceased's death under sections 9, 10 and 13. The Appellate Controller sustained the Assistant Controller's order holding that the matter was directly covered under section 13. The Tribunal confirmed the Appellate Controller's order, holding that the joint ownership of shares was akin to joint ownership of bank accounts. On reference, the accountable persons contended (i) that since the deceased had not made a gift of the shares to her sons, sections 9 and 10 were not attracted; and (ii) that section 13 was not applicable as the arrangement entered into by the deceased did not involve the creation of a trust, nor was there any direction that the shares should pass by survivorship on her death. On reference: Held Three conditions are necessary for the applicability of section 13, viz., (i) the deceased must have been absolutlely entitled to the property or to the fund with which the property was purchased; (ii) the deceased must have transferred the property to or vested it in himself and another jointly; (iii) the beneficial interest in some part of the property must have passed or accrued by survivorship to the other person on the deceased's death. In the instant case, all the three conditions had been satisfied since (a) the deceased was the absolute owner of the impugned…

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