CONTROLLER OF ESTATE DUTY Vs. RAMESH CHAND GUPTA

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Delhi Bench, has made this reference under Section 64(1) of the Estate Duty Act at the instance of the Controller of Estate Duty, U.P.

(2.) THE case relates to the estate duty assessment in respect of the property of Sri Gaindamal who died on 14th October, 1964.

(3.) IN appeal before the Controller of Estate Duty, the accountable person did not dispute the addition of Rs. 25,000 (the amount gifted by Gaindamal within two years of his death) in the value of the property passing or deemed to pass on the death of Gaindamal. He, however, disputed the addition of Rs. 40,000, balance of the gifted amount, and interest amounting to Rs. 12,000 in the value of the property left by the deceased. The Controller found that from out of the amount of Rs. 40,000 a sum of Rs. 10,000 had been gifted by making book entries which was not valid and upheld its addition. Gift of remaining sum of Rs. 30,000 was made by the deceased by delivering cash to the respective donees. However, the donees deposited this amount with the firm, Gaindamal Sukhbir Singh, but subsequently withdrew a sum of Rs. 5,000 more than two years before Gaindamal's death. Under Section 10 of the Estate Duty Act, only an amount of Rs. 25,000 could be the property deemed to pass on the death of Gaindamal. Consequent to this finding, the Appellate Controller retained the interest which appertained to Rs. 10,000 (the amount in respect of which the gift was held to be invalid) amounting to Rs. 3,000 in the estate of the deceased. IN short the Appellate Controller upheld the inclusion of the gift amounting to Rs. 60,000 (Rs. 25,000 gift made within two years of Gaindamal's death, Rs. 10,000 invalid gift and Rs, 25,000 property deemed to pass on donor's death) and interest amounting to Rs. 3,000 in the estate of the deceased.