JOSE KANNAMPILLY L Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) This is a reference made by the Madras Bench of the Income Tax Appellate Tribunal under S.64(1) of the Estate Duty Act, 1953, on the application of the Assessment. The questions referred are:

(2.) Kannampilly Lonappan Lonakunju died on 14-12-1962. On 2-1-1957 he deposited a sum of Rs. 25,000/- in the Catholic Syrian Bank, Ltd., in the name of his minor son, K.L. Baby. The deceased was the guardian; and in that capacity, he drew the interest from the bank. He did not maintain any accounts regarding the amounts so withdrawn. On 14.12.1956, he executed a deed of gift in respect of some immovable properties in favour of his seven sons, of whom three were 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 can be recovered by the donee from his Estate. The Appellate 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 S.10 of the Act.

(3.) Section 10 reads: