CONTROLLER OF ESTATE DUTY Vs. MAHENDRA JAINSINGLAL

JUDGEMENT

(1.) THE only question of law referred to this Court for opinion by the Tribunal is :

(2.) THE deceased had gifted Rs. 1,50,000 and Rs. 50,000 to his wife, Subhadraben, and son, Pratap, respectively, on 15th Nov., 1953. These amounts were initially deposited by the donees in their personal bank accounts. Later on, the donees withdrew the amounts from their banks and deposited them with the firm in which the deceased was a partner. It was the case of the Department that the provisions of S. 10 of the ED Act, 1953, were attracted and, therefore, these two amounts were includible in the principal value of the estate of the deceased.

(3.) THERE being no dispute about the facts, the Supreme Court decision in CED vs. C. R. Ramachandra Gounder (supra), which has been recently followed by the Supreme Court in the case of N. K. Sanghi vs. CED (1988) 70 CTR (SC) 120 : (1988) 172 ITR 413 (SC), is squarely applicable. Accordingly, the question of law is answered in the negative and against the Revenue.