CONTROLLER OF ESTATE DUTY Vs. BOMANSHA FRAMJI CAMA

JUDGEMENT

(1.) THE provisions of section 14 of the Estate Duty Act, 1953, have to be interpreted in this reference made at the instance of the Revenue under that Act.

(2.) THE deceased, Pestonji E. Polson, died on November 6, 1962. By an indenture of settlement dated January 27, 1942, the deceased had settled on trust five policies of insurance on his life. We are concerned here with two of those policies, one issued by the Norwich Life Insurance Society and the other by the Security Life Assurance Co. Ltd. The sum assured under each policy was Rs. 50,000. The premiums on the said two policies, even after their assignment under the settlement, were paid by the deceased. The first of the two policies became fully paid -up on September 22, 1959, and the second on June 1, 1957. On the death of the deceased, a sum of Rs. 97,396 became receivable in respect of the first policy and a sum of Rs. 77,370 in respect of the second policy.

(3.) ARISING out of the judgment of the Tribunal, the following question is referred for our consideration :