CONTROLLER OF ESTATE DUTY Vs. GANDHI D A

JUDGEMENT

(1.) THIS is a reference under section 64(1) of the Estate Duty Act, 1953. The decreased, at one time, was the owner to the extent of one -third of the following properties : (a) the property at Bajaj Road, Vile Parle; (b) property at Ghodbunder Road, Vile Parle; (c) property at Mahim.

(2.) BY release deeds dated March 29, 1957, the deceased released her one third share in the above three properties in favour of her two sons in consideration of their paying to her Rs. 600 per month during her lifetime. For the payment of the said amount, a charge was created on the property situated at Mahim. It is also an admitted position that the property at Bajaj Road, Vile Parle, was made over to the deceased for her residence during her lifetime and up to her death.

(3.) THE estate duty authorities had held to the contrary on the following reasoning : There was a charge on the Mahim property for payment to the deceased of a monthly maintenance of Rs. 600. Since the income from the Mahim property was only Rs. 311 per month, the estate duty authorities assumed that the balance amount of monthly maintenance might have come from the income of the Ghodbunder Road property. The Tribunal has held that this is conjecture without any basis. We agree with the Tribunal that there was no charge on the property at Ghodbunder Road for the maintenance of the deceased nor did she retain any interest in the property in any manner after the release deed and up to the time of her death. Hence, it (i.e., one -third share in it) does not pass on the death of the deceased.