KUTTIAMMAL Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE questions referred by the Income-tax Appellate Tribunal, Madras " B " Bench, for the opinion of this court at the instance of the revenue and the assessee are the following :

(2.) THE second question has been referred at the instance of the assessee and the other two questions at the instance of the revenue.

(3.) THE accountable persons took the matter further in appeal to the Tribunal. THE Tribunal found that the very fact that the deceased had executed the settlement deeds in respect of the lands in favour of his wife and daughter would show that from the date of the settlement deeds his interest in the properties came to an end and he was not in a position to hand over possession of the lands to the donees because there was a subsisting lease in favour of Ponnurangam Naicker until 30-6-1956. THE Tribunal further found that it was in the interest of the donor's minor daughter, Sulochana, that the entire rent received by the donor was not handed over to her but credited in his accounts in the bank and that it was just and reasonable for the father to let the daughter withdraw the amounts as and when required by her. But so far as the wife is concerned, the Tribunal opined that the rent due to the wife " was perhaps utilised by the husband " and that the donor was not entirely excluded from the enjoyment of the amounts gifted to her. As regards the house property, the Tribunal found that though it was the intention of the deceased in 1946 to buy the house in the name of his wife and live in the house, it could not be stated that after the wife settled the property on the daughter on the occasion of her marriage he had domain over the property even if he had retained domain over the property after the gift in favour of his wife. In this view, the Tribunal allowed the appeal in respect of the lands gifted to the daughter, Sulochana, and the house gifted to the wife, Kuttiammal, and dismissed the appeal in respect of the value of the lands gifted to the wife.