CONTROLLER OF ESTATE DUTY Vs. SURESH CHANDRA

JUDGEMENT

(1.) Late Lala Thakurdas was the karta of a Hindu un-divided family consisting of himself, his wife Smt. Jawala Devi and his two minor sons, Suresh Chandra and Arnrit Rai. The deceased also had a daughter named Kamla Devi. He died on 22-11-1957. At that time his daughter was already married.

(2.) During the course of assessment proceedings in respect of- the estate of Lala Thakurdas, who will hereafter be referred to as the deceased, the Assistant Controller of Estate Duty noticed from the personal accounts of the deceased with various concerns that he had transferred by way of gifts the following amounts to his two sons and daughter on the dates noticed against each :- <FRM>JUDGEMENT_475_ILR(DEL)2_1972Html1.htm</FRM>

(3.) The accounts showed that the deceased as karta of the Hindu undivided family effected the dispositions of Rs. 75,000 each to his sons and Rs. 25.000.00 to his married daughter, Kamla Devi by debiting his personal account with Messrs. Indraprastha Corporation Private Limited and crediting the accounts of the respective recipients therein. On 28-12-1954 when the above dispositions were effected the opening balance with Messrs. Indraprastha Corporation Private Limited was Rs. 5,455/15/3 and the closing balaace was Rs. 2,454/9/3. As there was no sufficient cash balance with the said company on the material date and inasmuch as Suresh Chandra and Arnrit Rai the sons of the deceased were minors at the relevant time, the Assistant Controller held that there were no valid gifts in favour of the sons nor in favour of the married daughter. The Assistant Controller held that the sums of Rs. 75,0001- sought to be given to each of the two. sons. and Rs. 25,000.00 to Smt. Kamla Devi, fell under Section 5 of the Estate Duty Act, 1953 in the absence of a complete gift. He therefore included those amounts in the dutiable estate. On 1-11-1956 the deceased made further dispositions of Rs. 35.000.00 to each of his sons and on 31-7-1957- he made another disposition of Rs. 61.000.00 to eaqh of his sons. The Assistant Controller observed that the last mentioned two gifts of Rs. 35.000.00 and Rs. 61,000.00 were made within two years of the death of the deceased and they had already been declared in the return. The Assistant Controller therefore included these amounts also, totalling Rs. 1,92,000 / - in the dutiable estate.