KHATIJABAI ABDULLA SOOMAR Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) This case has been stated under Sec. 64(1)of the Estate Duty Act, 1953, and two questions referred to this Court by the ITAT at the instance of the accountable person, namely, the applicant. These two questions are :

(2.) For an understanding of how Question No. 2 came to be referred to us, it is necessary to set out the material facts. The deceased, Abdulla Soomar Shivji, gave a gift of two sums of Rs. 75,000 each to his grandson, Hassan Jafferali Shivji, and granddaughter, Aminabai Jafferali Shivji, both minors, on 11 -05 -1955 and 23 -07 -1955, respectively. These gifts were accepted on behalf of the minors by their father. The deceased was a partner in the firm of Soomar Shivji & Co. The first sum of Rs. 75,000 gifted as aforesaid was deposited by the guardian of the minors in the said firm on 10 -07 -1955. The second sum of Rs. 75,000 was similarly deposited in the said firm on 12 -08 -1955. The deceased retired from the said firm on 12 -11 -1958. He died on 25 -03 -1960. Until his death the said two sums remained deposited with the said firm. As he had died within two years of his retirement from the said firm, the Assistant Controller included these two sums in the estate of the deceased as property which was deemed to pass on the death of the deceased under Sec. 10 of the Estate Duty Act. This view was upheld by the Appellate Controller as also by the Tribunal. It is against this finding that the second question is directed.

(3.) At the hearing of this reference several decisions were relied upon by both learned counsels. Before we turn to consider these authorities, it will be convenient to set out at this stage the material provisions of Sec. 10 of the said Act which are as follows :