Law:

Section:

Section 5(1) of the Estate Duty Act, 1953 - Property passing on death - Deceased obtained properties of her husband by virtue of a will including a mill - Tribunal upheld claim of accountable person that deceased had only a right of control and management over mill and interest of deceased was confined only to her one-eighth share - Whether all mill assets were liable to be included in estate of accountable person and not one-eighth share only -Held, on facts, yes Section 7 of the Estate Duty Act, 1953 - Interest ceasing on death - Whether in view of facts given under heading 'Property passing on death' all mill assets were includible in dutiable estate of deceased - Held, yes FACTS One V executed a will in favour of his wife R and died in June 1957. R passed away in October 1972 and the accountable person claimed that R was constituted under the will of R as an administrator and that the estate did not pass on her death as it had already passed to them on the death of V. The Assistant Controller concluded that all the properties devolved on deceased R as her absolute properties and passed on her death or alternatively under section 7(1) the properties should be deemed to have passed on the death of R. The Appellate Controller agreed with the conclusion of the Assistant Controller. On further appeal by the accountable person before the Tribunal, it was contended that though in respect of the residential building and agricultural lands, the deceased had been given absolute estate, yet, in respect of the mill comprised in V's estate, the right given to the deceased was one of mere management without any power of alienation and on a proper construction of the clauses in the will, there was neither the conferment of an absolute estate nor beneficial enjoyment over the entire income on the deceased R. The Tribunal took the view that the deceased had only a right of control and management over the mill and the absence of provision conferring a right over the entire income from the mill clearly indicated that the interest of the deceased was confined only to her one-eighth share, which alone could be said to have passed, within the meaning of section 5. On reference:…

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