CONTROLLER OF ESTATE DUTY Vs. V G BADAMIA

JUDGEMENT

(1.) THE Tribunal has referred only one question of law to this court for opinion under section 64 (1) of the Estate Duty Act, 1953. The question reads thus : "whether, on the facts and in the circumstances of the case, the Tribunal, on the ratio of the decisions of the Supreme Court in CED v. C. R. Ramachandra Gounder (88 ITR 448) and CED v. N. R. Ramarathnan (91 ITR 1), was correct in holding : (a) that there was a mistake apparent on the face of the record in so far as its order dated december 20, 1970 in Estate Duty Application No. 100 of 1966-67 is concerned, and (b) that the finding of the Tribunal upholding the inclusion of the aforesaid sum of Rs. 3,36,000 in the estate of the deceased passing on his death under section 10 of the Act merited deletion ?"

(2.) THE deceased had, during his lifetime, given a sum of Rs. 3,36,000 by way of gift to his wife and sons including minor sons, the amounts were gifted in cash after he had withdrawn the money from this bank account. Subsequently, the amounts were deposited by the donees with m/s. G. T. Badamia and Sons, then a proprietary concern into of the deceased. The business was converted into a partnership consisting of the deceased having 9 annas share and his son, valimohomed, having 7 annas share in the profits and losses with effect from January 1, 1948.

(3.) THE departmental authorities as well as the Tribunal held that the provisions of section 10 of the Estate Duty Act, 1953, were attracted inasmuch as the amounts given by way of gifts by the deceased continued to remain in the business of which the deceased was a proprietor for some time and had become and continued as partner thereafter, it appears that, at the instance of the accountable person, reference was made by the Tribunal to the court under section 64 (1) of the estate Duty Act.