KANAKASABAI R Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference under the Estate Ditty Act at the instance of the accountable persons. One Rathna-sabhapathi Pillai died on February, 5, 1959. The subject-matter of the reference is the total value of six gifts of immovable property made by tile deceased person in favour of his sons, grandsons, daughter and wife namely, Rs. 7,33,656. The Revenue considered that the reservation in each of the gifts towards maintenance attracted Section 12, or, in the alternative, Section 10: The question to consider is:

(2.) WE are of the view that there is no room whatever for the application of Section 12. The gift deeds were all executed more than two years prior to the death of the deceased, The first four deeds are in favour of his sons and grandsons and are in stereotyped form. The disposition in these documents of the immovable property is of absolute ownership. On that matter there can be little doubt. But the disposition was followed by these words, "During my lifetime you should pay me rupees one thousand per annum for the expenses of my livelihood". The payment should be made out of the income from the properties given to the grandsons. In the case of the gift to the daughter, die words were, "You should maintain myself and my wife Rajambal alias Sivanandavalli Animal till our lifetime". In the case of the wife, the language is, "Since I am getting sickly and I reel I may not live long from now and on the confidence that you will maintain me till my life, I hereby give by means of this" settlement with immediate effect,..." The provision in the first four deeds for payment of a sum of Rupees 1,000 per annum, in our opinion, is not a charge on the property given as a gift, nor does it create any interest therein. The position is the same in respect of the deed in favour of the daughter. So far as the wife is concerned, there is not even a provision for maintenance. All that is found is a confidence expressed by the donor as to his maintenance by the wife. For Section 12 to apply, there should be a reservation of an interest in the property settled. The reservation may be express or implied, but it should be of an interest in the property which is the subject-matter of the settlement. That is clearly not the case here in any of the deeds. WE are unable to accept the contention for the Revenue to the contrary.