KIKABHAI SAMSUDDIN Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) IN this reference made at the instance of the accountable person by the CBDT under S. 64(1) of the ED Act, 1953 (hereinafter referred to as the Act), the following question has been referred to us:

(2.) THIS reference arises out of the estate duty assessment pertaining to the estate of Haji Samsudding Rajabali, who died on 30th June, 1954. Prior to his death, the deceased had executed five gift deeds, all dt. 25th Sept., 1951; and by each gift deed he gifted different immovable properties mentioned in the relevant gift deed to each of his five sons. At the time of these gifts, three of the sons were minors and in their cases, the gifts were accepted by the mother as the guardian of the three minor sons. The major sons themselves accepted the fits on their behalf. In each of the five gift deeds certain conditions were laid down by the deceased. Two of the three minor sons, Badruddin and Shabuddin, were required to bear the maintenance expenses of the mother in equal shares. The third minor son, Rajabali, was required to bear the maintenance, education and marriage expenses of his sister, Nasifa. Kikabhai and Sadaqali were required to bear the maintenance, education and marriage expenses of two other daughters of the deceased. In addition, the elder son, Kikabhai, was also required to allow the deceased to continue to carry on his business in one of the building, which Kikabhai received under the gift deed in his favour.

(3.) THE five gift deeds have been annexed to the reference and it would be better to reproduce the relevant portions from the gift deed in favour of Kikabhai, the major son. In the gift deed in Kikabhai's favour, after gifting the three properties, it is stated: