N BHAGAVATHY AMMAL Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) ALL these tax cases arise out of proceedings for determination of estate duty in respect of the estate of the deceased, Kumaraswami. It would be enough to refer to only such of the relevant facts which are material for the decision of the eight questions which have been referred to this court by the Income-tax Appellate Tribunal for opinion. One Sastha, the deceased, had three sons, S. Kumaraswami, S. Nelliappan and S. Nagamani. After the death of Sastha, there was a partition among the three brothers on August 17, 1943. Kumaraswami's wife died in 1954. At the time of death of Kumaraswami which took place on October 18, 1960, the family consisted of Kumaraswami and his four daughters. In 1957, the deceased, Kumaraswami, gifted portions of his house to his four daughters. Three of his daughters had been married and Rajammal, the fourth daughter, was unmarried.

(2.) THE deceased with his two brothers had sold large extent of rubber gardens and cocoanut thopes to Messrs. Palkulam Estates Private Limited by a sale deed dated March 23, 1953, for Rs. 10,50,000. Out of this consideration, Rs. 6 lakhs was directed to be paid to one R. H. Crowther from whom the rubber gardens had been purchased. For the balance of Rs. 4.50 lakhs, the deceased and his two brothers were each allotted 1,500 shares of Messrs. Palkulam Estates Private Limited, each share being of the face value of Rs. 100.

(3.) THE deceased had also 1,700 shares in Messrs. Palkulam Estates Private Limited. THE accountable persons had valued the shares at Rs. 199,26 each. THE Assistant Controller, however, determined the value at Rs. 1,177 per share.