CONTROLLER OF ESTATE DUTY Vs. PADMAVATHI RAMACHANDRAN

JUDGEMENT

(1.) IN the pursuance of the directions of this Court, the Appl. Tribunal has referred u/s. 64(3) of the ED Act, the following question :

(2.) THE Asst. CED considered the settlement deeds executed by Ramchandran in the context of s. 10 of the ED Act. He was of the view that the said transactions amounted to 'gifts' made by the deceased to his wife and brother's wife, that since the amounts gifted were lying in deposit with M/s. Saganla in which the deceased was a partner, it could not be said that bone fide possession and enjoyment thereof were immediately assumed by the donees and thenceforward retained by them to the entire exclusion of the deceased donor and that consequently s. 10 of the ED Act applied. He accordingly brought to tax Rs. 1, 71, 519/- made up of Rs. 1, 20, 390/- in the name of Rajalakshmi, in the books of M/s. Saganla as on the date of the death of Ramchandra. THE accountable persons appealed against the assessment to estate duty challenging the inclusion of the said sum of Rs. 1, 71, 519/- u/s 10 of the ED Act. THE Appl. Contr. confirmed the assessment. On further appeal to the Tribunal, the Tribunal directed, following the decision of the Supreme Court in CED ] C. R. Ramchandra Gounder, deletion of Rs. 1, 71, 519/-. It is this order of the Tribunal that has given rise to the reference mentioned already.

(3.) THIS Settlement does not absolve the Settlor from his obligation to maintain the Beneficiary.