Law:

Section:

Section 44(a) of the Estate Duty Act, 1953 - Deductions - Debts and encumbrances - One N in 1929 executed a deed of settlement whereby certain properties were conveyed to himself and his wife S - It was provided that after N's death, surviving trustee, S, could spend any amount of money of trust estate for spiritual benefits of N -After N's death in 1940 by a deed S relinquished her share under 1929 deed in favour of her three sons including R - On same day a second deed was executed between S and her sons mentioning that to prepetuate memory of N a charitable institution was to be established and payment of money was to be secured by charge on specified properties of trust estate created by 1929 deed - Subsequently on death of S residual property of trust estate vested upon three surviving sons in equal shares - On death of E, his estate was assessed - Whether when disposition was made and charge was created not by deceased R but by S as surviving trustee, in respect of one-third of amount for which a charge had been created over properties of trust, provisions of section 44(a) would not be applicable and, therefore, no disallowance could be made under that section - Held, on facts, yes Section 33 of the Estate Duty Act, 1953 - Exemptions - Whether on basis of facts under head 'Deductions - Debts and encumbrances' aforesaid debt was allowable otherwise in determining value of estate of deceased R - Held, yes FACTS One N in 1929 executed a deed of settlement whereby certain properties were conveyed to himself and his wife S. It was provided that after the death of the settlor the surviving trustee, viz., S, would stand possessed of the said properties subject to certain conditions and she could spend any amount of money of the trust estate for the spiritual benefit of N. After the death of N, the surviving trustees stood possessed of the said properties. In 1940 S executed a deed by which she relinquished her share including her beneficial interest under the original deed in favour of her remaining three sons including R. On the same day another deed was executed by S as the sole surviving trustee and her remaining three sons as settlors. In that second deed it…

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