Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Gifts made where donor not entirely excluded - Deceased had made several gifts and settlements of agricultural lands in a favour of his daughter, son-in-law and grandsons - Since son-in-law had a transferable job, deceased managed said lands himself during his lifetime and income/expenditure in respect of such lands were credited/debited in his books in accounts of donees - Whether gifts were absolute and merely because donees could not look after cultivation personally and donor cultivated lands on behalf of donees it could not be concluded that donor had reserved any interest or that as a matter of right he was entitled to enjoy said property -Held, yes Section 16, read with section 44(a) of the Estate Duty Act, 1953 - Deductions - Limitations - Whether on facts mentioned under head gifts made where donor not entirely excluded it could be said that amounts standing to credit of donees, accounts which were debts owed by deceased would be hit by provisions of section 45 - Held, no FACTS The deceased had made several gifts and settlements of agricultural lands in favour of his daughter, son-in-law and grandsons. Since the son-in-law had a transferable job, he was liable to be transferred from place to place and the property was managed by the deceased himself during his lifetime and the income/expenditure in respect of such lands were credited/debited in his books in the accounts of the donees. After his death on 27-6-1970 the Assistant Controller included the settled property in the estate of the deceased on the ground that the entire income of the property had come into the possession of the deceased and was used by him for his business notwithstanding the fact that separate accounts of the donees had been maintained and that the donees did not enjoy the property to the entire exclusion of the deceased. The Assistant Controller also disallowed the claim of debts shown as due to the donees by applying section 46 on the ground that these amounts were liable to abatement under section 46(1)(b). On appeal, the Appellate Controller deleted the addition holding that possession of the deceased was not attributable to any…

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