CONTROLLER OF ESTATE DUTY Vs. NARAYANDAS GATTANI

JUDGEMENT

(1.) AT the instance of the Revenue, the following questions have been referred by the Tribunal under s. 64(1) of the E.D. Act :

(2.) REFERENCE arises out of E. D. assessment consequent of the demise of one Shri Puranmal Gattani on February 17, 1961. He was a self -made man carrying on business and acquired properties without the aid of any ancestral nucleus. On May 28, 1952, he gave a sum of Rs. 31,000 to one of his sons, Shri Narayandas, who, on receipt of the amount, executed a document styled as relinquishment deed on a stamp paper of Rs. 500. The schedule attached to that document refers to several immovable properties and so also cash of Rs. 7,000 as the movable property in respect of which the relinquishment has taken place.

(3.) IN the E.D. assessment, consequent on the demise of Shri Puranmal, the question arose as to whether the sum of Rs. 31,000 and Rs, 51,000 paid to the two sons under the circumstances was includible as estate of the deceased. The Asst. CED held that the aforesaid properties were liable to be included in the assessment because of the provisions of s. 10 of the E.D. Act. This was based on the reasoning that the deceased had gifted the property and was not entirely excluded from their enjoyment because the said amount has been invested in the partnership in which the deceased was also a partner.