SARWARI KAHTOON Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference by the Board of Revenue under Section 64(1) of the Estate Duty Act, 1953, hereinafter referred to as " the Act", on the following question of law :

(2.) THE material facts giving rise to this referrence are as follows : THE two hotels, hereinafter referred to as the said property, belonged to late Sri Razzak Mohammad (hereinafter referred to as "the deceased"), who died on July 26, 1956. Before his death the deceased had executed a deed of transfer in respect of the said property conveying the same to his son, Sri Sultan Mohammad, by a registered instrument dated September 11, 1936. By this deed he transferred the whole of the said property to Sri Sultan Mohammad, his son, "inconsideration of his services, obedience and love and affection and in further consideration of a sum of Rs. 10,000 per year till my lifetime."

(3.) THE applicant preferred an appeal to the Board of Revenue under Section 63 of the Act, against the order of the Assistant Controller, Estate Duty, Lucknow, in which it was contended, inter alia, that she should not be treated as an accountable person as no property passed to her on the death of the deceased. THE Board held that as the deceased had reserved the benefit to himself while making the transfer of the said properties in 1936, the provisions of Section 10 of the Act came into operation and the same would be deemed to pass on his death. THE Board observed that inasmuch as l/4th share in the said property devolved on the applicant as a legal heir of the original donee she must be considered as an accountable person for the portion of her property. THE Board, therefore, affirmed the assessment and dismissed the appeal.