CONTROLLER OF ESTATE DUTY Vs. SMRITI BANERJEE

JUDGEMENT

(1.) The facts found or admitted as on record are, inter alia, that one Raghunath Banerjee died on June 4, 1963. After his death, his estate was assessed to estate duty in the hands of the accountable person. The initial assessment was made on February 2, 1968, which was subsequently revised on July 29, 1970, and January 10, 1972.

(2.) During his lifetime, the deceased by a deed dated March 25, 1959, made a gift of five immovable properties which were all let out, viz., premises Nos. 11A, 11/1A, 11B, 11/1B and 10/1, Radha Mohan Saha Lane Calcutta, to his son, Benoy Kumar Banerjee, absolutely and for ever and delivered possession of the same to the latter. It was declared in the said deed that there would be a charge upon the said properties given in the gift of Rs. 50 per month for payment of tax and cost of repairs of premises No. 25, Chorebagan Lane, Calcutta, during the lifetime of the deceased and his wife. It has been found that the deceased, during his lifetime, used the said premises No. 25, Chorebagan Lane, Calcutta, as his residence. The donee accepted the gift.

(3.) The Assistant Controller of Estate Duty reopened the assessment of estate duty and an order was passed on reassessment on August 2, 1972. It was held that as the deceased had reserved some benefit for himself in the said immovable properties given in gift by him to his son, the said properties and the possession and enjoyment thereof were not retained by the donee to the entire exclusion of the donor and as such the said gift came within the mischief of Section 10 of the Estate Duty Act, 1953, and that the said properties should be deemed to pass on the death of the deceased. It was noted that in the original assessment, the value of the said properties given in gift had not been included in the estate and, therefore, escaped assessment. It was directed that a sum of Rs. 43,344 being the market value of the said five properties be included in the principal value of the estate which was enhanced accordingly.