RAJAH RAGHAVARAJU SUBBARAJUGARU Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE Tribunal has referred the case on the following questions of law :

(2.) THE deceased is one Raja Raghavaraju Ranga Raju who died on 7th April, 1956, leaving his two sons who are accountable persons in this case. THEse accountable persons furnished an account of the property passing on the death of the deceased in which 408 acres, 71 cents of agricultural land, which was the subject-matter of the settlement deeds executed on 29th May, 1955, and 30th May, 1955, in favour of his wife, three sons and two grandsons was claimed to be not the property of the deceased on the date of his death. THE Assistant Controller of Estate Duty, however", found that the right of possession and enjoyment of the said agricultural land was conferred on the wife, three sons and two grandsons in 1953. THE deceased had delivered possession of another 136.82 acres of agricultural land to his first son in 1953, but had not executed any daeed of settlement in respect of it. In respect of 40871 acres of agricultural land, however, though the deeds of settlement were executed, as stated above, those deeds, it may be noticed, were within two years prior to the date of death of the deceased.. THE value of 408.71 acres of land and of 136.82 acres of land were determined for/purposes of the estate duty assessment, at Rs. 1,22,605 and Rs. 37,366, respectively. Inasmuch as the Assistant Controller considered that the property, which was subject-matter of the settlement deeds, was includible in the estate of the deceased, he included the same. On appeal to the Central Board of Direct Taxes, the argument put forward by the accountable persons was that delivery of possession of the property gifted and the course of conduct between the deceased and the donees, viz., the enjoyment of the said properties was exclusively that of the donees, was sufficient and the land should be excluded from the estate of the deceased, inasmuch as this enjoyment had commenced even two years prior to the date of death of the deceased. This contention was rejected by the Board which held that the registered deeds in respect of the gifted lands should -have been executed two years or more from the date of death of the deceased.

(3.) SECTION 9: