CONTROLLER OF ESTATE DUTY Vs. KOCHHAR T N

JUDGEMENT

(1.) THE Appellate Tribunal has submitted this statement of the case and has referred the following question of law for the opinion of this court:

(2.) THE dispute relates to the estate of Shri T.D. Kochhar who died on August 24, 1961. THE property in dispute was built between 1931 and 1937, and was registered in the name of the wife of the deceased, namely, Smt. Tulsa Devi. THE source of money spent on this property was the husband, Shri T. D. Kochhar. Shri Kochhar continued to reside in the house till his death. On these facts the Assistant Controller of Estate Duty included the same in the estate of the deceased. THE accountable person filed an appeal.

(3.) SECTION 6 of the Estate Duty Act provides that property which the deceased was at the time of his death competent to dispose of shall be deemed to pass on his death. It is well-settled that the property which stands benami in the name of another is one in respect of which the beneficial owner has no competency to dispose of. Before he can dispose of such a property he has to acquire a declaration from the appropriate court of law releasing the property in his favour. See Alok Mitra v. Controller of Estate Duty, 1971 82 ITR 450 .