NIRMALA KESHAVLAL SMT Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference on a case stated under S. 64(1) of the E.D. Act,1953. The question referred to us for our determination in this reference is as follows : 'Whether, on the facts and in the circumstances of the case, the donation of Rs. 1,00,000 made for public charitable purposes is dutiable in terms of section 9 of the Estate Duty Act, 1953 ?'

(2.) THE facts giving rise to the reference, which are relevant for our purposes, can be very briefly stated. The deceased Parvatibai Parsram Dabrai died on 14th September, 1966. On 29 th August, 1966, that is, less than one month prior to her death, the deceased had given a cash donation of Rs. 1,00,000 for public charitable purposes to an institution called Seva Sadan. The Assistant Controller, in assessing the estate of the said deceased to estate duty, included the said sum in the dutiable estate of the deceased. He held that this sum was liable to be included in the dutiable estate under the provisions of s. 9 of the E.D. Act, 1953, as a gift made within six months prior to the death of the deceased. The appeal preferred by the accountable person to the Appellate Controller was dismissed and so also the appeal preferred by the accountable person before the Tribunal. It is from this decision of the Tribunal that the aforesaid question has been referred to us.

(3.) A similar definition is to be found in New Webster's Dictionary, Deluxe Encyclopaedic Edition. This definition clearly shows that 'donation' is merely regarded as a category of 'gift'; and thus a donation is clearly included in the term 'gift' used in s. 9 of the E.D. Act.