Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Property deemed to pass on death - Deceased deposited Rs. 25,000 in a bank in name of his minor son - Deceased in capacity of guardian drew interest from bank - He did not maintain any accounts regarding interest withdrawn - Later he executed a deed of gift in respect of some immovable properties in favour of his son - He took power of attorneys from sons and he was managing those properties till his death as attorney of major sons and guardian of minor sons - Later he executed a will which stated among other things that income from gifted property was utilised by him to extent of Rs. 49,000 and that said sum could be recorded from his estate - Tribunal held that aforesaid sum of Rs. 25,000 and properties gifted by deceased to his sons would be deemed to be properties passing on death of donor by virtue of section 10 - Whether, on facts, there was no infirmity in finding of Tribunal - Held, yes FACTS The deceased 'L' deposited a sum of Rs. 25,000 in the Bank, in the name of his minor son. The deceased was the guardian; and in that capacity, he drew the interest from the bank. On 14-12-1956, he executed a deed of gift in respect of some immovable properties in favour of his seven sons, of whom there were three minors. He took power of attorneys from the major sons, and he was managing these properties till his death as attorney of the major sons and guardian of the minors. On 2-9-1962, he executed his last will, which stated, among other things, that the income of the gifted properties was utilised by him to the extent of Rs. 49,000, and that the said sum could be recovered by the donees from his estate. The Tribunal and the subordinate authorities held that the aforesaid sum of Rs. 25,000 and the properties gifted by the deceased to his sons would be deemed to be properties passing on the death of the donor by virtue of section 10. On reference : HELD The amount of Rs. 25,000 was admittedly deposited by the deceased in the name of his minor son. The deceased drew the interest accrued thereon only in his capacity as guardian. Possession of the deposit receipt and dealing with the deposited amount as guardian amounted to…

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