CONTROLLER OF ESTATE DUTY WEST BENGAL Vs. B V KAPADIA ACCOUNTABLE PERSON TO THE ESTATE OF LATE V B KAPADIA

JUDGEMENT

(1.) The following question is involved in the Reference under Section 64(1) of the Estate Duty Act, 1953: -

(2.) Rs.75,000/- was included in the valuation of the estate of the deceased under Section 10 of the Estate Duty Act, 1953, hereinafter referred to as "the Act," by the Assistant Controller of Estate Duty whose order was sustained by the Appellate Controller of Estate Duty by following the decision of the Privy Council in the case of (1) Messrs. Clifford John Chick and Anr. v. The Commissioner of Stamp Duty, reported in 37 ITR 89(ED).

(3.) A further appeal was filed by the accountable person before the Appellate Tribunal. It was contended before the Tribunal on his behalf that Rs.75,000/- did not pass on the death of the donor under Section 10 of the Act, for according to him, the donor had no right to possess or enjoy this amount and that Chick's case had no application to the fact and circumstances of the case. It was also contended on his behalf that the said capital contributed by the donee could not in law be the property of the firm and therefore the deceased could neither derive any benefit out of it nor could he exercise control over it as a partner of the firm. The Tribunal, after discussing the law of partnership, quoting Lindley on Partnership (11th Edn.) at p. 406, citing Section 10 of the Act and distinguishing Chick's case, accepted those contentions and allowed the appeal in the following terms: