GAJRA BAI Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE question of law referred for the opinion of this court under section 65(1) of the Estate Duty Act, 1953, hereinafter called the Act, is :

(2.) THE deceased, Kasturchand Kundanmull, was one of the two partners of the firm, Messrs. Kasturchand Kundanmull, the other partners being his son, Pukraj. On November 6, 1953, the deceased gifted a total sum of Rs. 35,000 to his three grand-daughters who were then minors. THEse gifts were made by means of transfer entries in the books of the firm by debiting the amount in the personal account of the deceased and crediting the respective amounts in the accounts of the three donees. THE deceased also executed a trust deed, dated March 31, 1954, under which he appointed his son, Pukaj, to be the trustee for the amounts gifted by him. THE trust deed authorised the said trustee to withdraw the gifted amounts from the firm at any time at his discretion. But the gifted amounts were not withdrawn from the firm and the same continued to remain with the firm till the death of the deceased on October 29, 1961.

(3.) THE material portion of section 10 of the Act reads thus :