RODRIGUES M J Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference made under S. 64(1) of the ED Act, 1953 (hereinafter referred to as "the Act"), requiring our opinion on the following question :

(2.) ON behalf of the accountable person, it is, submitted that S. 10 was not applicable to the facts of the case and the same had been wrongly applied inasmuch as the gift having become complete and the partnership deed having come into existence subsequently and the gifted property having been invested in the partnership firm would not be a benefit conferred upon the donor within the meaning of S. l0 of the Act and, therefore, such property was not includible in the estate of the deceased in respect of which the duty has to be levied. However, the Revenue contended that inasmuch as the transfer of property is absolute and not being subject to rights of partnership, the principles set out either in Munro's case (supra) or in Viswanathan's case (supra) are not applicable and, therefore, the order of the Tribunal was correct.

(3.) THE relevant portion of the section of the Act with which we are concerned reads as under: