Law:

Section:

Section 10 of the Estate Duty Act, 1953 - Gifts - Whenever made where donor not entirely excluded - Deceased purchased a land in name of his daughter, 'T', and constructed a house thereon in her name - Aforesaid house was sold by 'T' - Subsequently, she repurchased said house and mortgaged same through her husband as her power of attorney - Certain amount out of amount realised from said mortgage was utilised in deceased's business and was credited to capital account of husband of 'T' who was also acting as power of attorney of deceased - Whether on facts, it could be said that money was not advanced to deceased by 'T' but by husband of 'T' - Held, yes - Whether, therefore, it could not be inferred that property in question was benami in name of 'T' and as such it could be held that said property did not form part of estate of deceased - Held, yes FACTS The deceased purchased a land in the name of his daughter 'T', and thereafter built a house on it in her name with his money. In 1952, the aforesaid house was sold by 'T' to one 'B' and the recitals in the sale deed showed that as the income of her husband had been dwindling away due to losses in business, and the family was facing troubles and difficulties, it was necessary to sell the house to advance money to the husband to extend his business. Thereafter in 1953, the aforesaid house was repurchased by 'T'. On 18-11-1953, 'T' mortaged the property through her husband as her power of attorney. The deceased died in 1958 and in computing principal value of estate of deceased the value of the aforesaid house was included. The Assistant Controller as well as the Central Board had inferred that the earlier purchase of the land and the construction of the building, for which the deceased had paid, was benami in the name of 'T' and, secondly, section 10 was applicable to the case. On reference: HELD Where property is in the name of a person other than the deceased, the onus is upon the department to show that it was a benami transaction. This is also the general rule, namely, that a party who alleges that a transaction is a benami transaction, must prove it. Secondly, for the purpose of application of section 10, it…

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