CHALAPATHI VENKAYAMMA Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) Alluri Krishna Rao died on 25/11/1971. He was survived by three daughters. Seshayamma and Ammaji are his second and third daughters, respectively. To the former, the deceased had gifted Ac. 60.58 cents of arable land and to the latter, Ac. 58.48 cents on 25/10/1957. Sugarcane was grown in the two parcels of land. The lands were managed by Krishna Rao till he died. Sugarcane was grown over the land and cane was supplied to Jaipur Sugar Company. The donees were paid the proceeds of sales.

(2.) The accountable person represented, in the above circumstances, that the two parcels of land were not the estate of the deceased. The Assistant Controller, the Appellate Controller and the Appellate Tribunal, all the three authorities rejected the contention and included the lands as part of the estate of the deceased Thereupon, at the instance of the accountable person, the following question is referred to this court :

(3.) In the course of inquiry, the first daughter of the deceased, Seshayamma and Ammaji, all the three surviving daughters, were examined. They deposed that the donees had received profits from the two parcels of land. The donor (deceased) had paid them to the donees (daughters). They have no complaint to make in this regard. It was found in the accounts of M/s. Jaipur Sugar Factory Limited, there was an amount of Rs. 1,10,000 credited to the deceaseds account. A letter of the deceased dated 3/04/1970, addressed to the two daughters (the donees) showed that the amount belonged to the donees. There was another letter dated 25/06/1966, addressed to the income-tax authorities, relating to the assessment year 1965-66, and in that the deceased represented that the lands were managed by him on behalf of the donees. The evidence adduced by the daughters, the two letters and other cognate circumstances were juxtaposed along with the fact that no accounts were maintained by the deceased.