CONTROLLER OF ESTATE DUTY Vs. JAISINH GOPALDAS

JUDGEMENT

(1.) AT the instance of the Revenue, the following three questions are referred to us for our determination :

(2.) THE above three questions arise out of the assessment to estate duty consequent upon the death of Gopaldas Poonjabhai which took place on 28th Aug., 1958. Gopaldas and his major sons were partners along with others in the firm called Khimji Poonja & Company, carrying on business in cotton, bullion, shares, etc., on extensive scale. The share of Gopaldas in the said firm was 1 1/2 annas in the rupee. Gopaldas had two accounts in the firm one was a current account and the other an investment account. Whenever he needed moneys, he took the same from the firm by debiting the same to his current account. He personally owned shares worth nearly Rs. 14 lakhs. The same were kept by him in deposit with the firm and they were offered as security by the firm for obtaining overdraft facilities in its business.

(3.) THE said sum of Rs. 4 lakhs was actually debited to the current account of Gopaldas in the books of the firm. The current account then showed a credit balance of Rs. 20,515 and the investment account showed a debit balance of Rs. 3,09,684. The result of the debit of Rs. 4 lakhs on 30th Nov., 1954, to the account of Gopaldas was to increase the debit balance considerably. Later on, his account was substantially overdrawn. On the date of his death, the debit balance in the current account, to which the sum of Rs. 4 lakhs was debited, was Rs. 8,53,000.