SRIVASTAVA K C Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference under Section 64(1) of the E.D. Act, 1953 (Act 34 of 1953) (hereinafter referred to as "the Act"), made by the Income-tax Appellate Tribunal, Delhi Bench "C". The following question has been referred by it for our opinion ;

(2.) THE matter arises out of the estate duty case of Miss H.S. Oliphant, who died on September 26, 1962. Sri K.S. Srivastava, who is one of the trustees under the trust created by Miss Oliphant, is the accountable person. He filed a statement regarding the estate of the deceased before the Asst. CED. Miss Oliphant founded a preparatory school for Indian boys called Welham Preparatory School in 1937. She acquired more properties thereafter. On September 29, 1956, having realised that she being 73 years of age was sufficiently old, executed a trust deed settling all the properties in favour of the school. This trust deed was executed by her to ensure the continuity and efficient management of the school so that it could render service to the Indian nation. She constituted a board of trustees consisting of herself and six others. THE properties, which were assigned and transferred to the trustees, were mentioned in schedule 'A' of the trust deed. THE value of these properties was estimated at Rs. 2,62,503-15-9 in the trust deed. THE immovable properties included buildings at Nos. 7, 7-A and 11-B, Circular Road, Dehra Dun. Apart from these buildings, there were two vacant plots of land at Nos. 5 and 9, Circular Road, Dehra Dun. All these properties were adjacent to each other. Movable properties included furniture and fittings, electric installations, refrigerator and security deposit. THE relevant clauses of the trust deed which deserve to be mentioned for the purposes of deciding this reference are the following I

(3.) WE may now refer to some of the provisions of the Act which would need consideration for deciding the question referred for the opinion of the High Court. Section 2(16) defines "property passing on the death", which includes property passing either immediately on the death or after any interval, either certainly or contingently. Section 5 is a charging provision. It provides: