CONTROLLER OF ESTATE DUTY Vs. KANTILAL NEMCHAND

JUDGEMENT

(1.) IN this reference made to this Court by the Tribunal under S. 64(1) of the ED Act the following question has been referred for our opinion :

(2.) THE facts giving rise to the question lie in a very narrow compass. One Nemchand Laherchand was carrying on business in the name and style of Kirtilal & Co. as its sole proprietor till 9th Nov., 1950. On 10th Nov., 1950, he converted his proprietary business into a partnership business by admitting his son, Kirtilal, as a partner with share of 6 annas in the profits and losses. He retained for himself 10 annas share. Later on by a deed dt. 10th Nov., 1956, the shares of the two partners were reshuffled. Nemchand's share was reduced from 10 annas to 4 annas and his son's share was raised from 6 annas to 12 annas. Such alteration in the profit sharing proportion was to take effect from 3rd Nov., 1956. Nemchand Laherchand died on 16th Feb., 1963.

(3.) MR . Joshi for the Revenue invited our attention to two or three material provisions having a hearing on the question referred to us. In the first place, he drew our attention to S. 2(15) which defined the expression "property" and Explanation 2 thereto, which run as follows :