CONTROLLER OF ESTATE DUTY Vs. B V KAPADIA

JUDGEMENT

(1.) THE following question is involved in this reference under S. 64(1) of the ED Act, 1953 :

(2.) THE facts stated in the statement of the case are as follows : The deceased was a partner of B. A. Brothers, Calcutta. On 7th Nov., 1953, he made a gift of Rs. 1 lakh to his daughter by making entries in the books of the said firm ; the donee received the gifted amount on 7th Nov., 1953, and on the same day became a partner of the said firm by contributing Rs. 75,000 as her capital out of the gifted amount ; the donor had 0-4-0 share and the donee had 0-3-0 share in the said firm with effect from that date ; and the donor died on 18th Oct., 1960, while he was a partner of the said firm. Rs. 75,000 was included in the valuation of the estate of the deceased under S. 10 of the ED Act, 1953, hereinafter referred to as "the Act", by the Asstt. CED whose order was sustained by the Appellate CED by following the decision of the Privy Council in the case of Clifford John Chick vs. Commissioner of Stamp Duties (1959) 37 ITR (ED) 89; 3 EDC 915 (PC).

(3.) SEC . 10 of the Act readers as follows :