INDRAJIT CHALIHA Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE following question has been referred under Sub-section (1)of Section 64 of the Estate Duty Act, 1953 :

(2.) THE reference relates to the estate of Jadav Prasad Chaliha. He was a planter-manufacturer and a tea merchant. He was the sole proprietor of a business styled as Korangani and Azizbagh Tea Estate. He converted the sole proprietary business into a partnership business on August 2, 1962. In that firm, his two sons, Indrajit and Ranjit, his spouse, Debabala, were admitted to the benefits of the partnership firm. Each of the three persons brought Rs. 2,000 and in all Rs. 6,000 was contributed by three of the partners. THE four partners were declared to be four equal shareholders. Ranjit Chaliha agreed to devote his time to the firm. He was to be paid Rs. 1,250 as salary for the first three years, Rs. 1,500 for the next three years and in the succeeding three years Rs. 1,750. Indrajit and Debabala agreed to devote attention to the business and perform all that as may be required of each of them for the business of the firm.

(3.) WE see Ranjit had agreed to devote his entire time to the business of the firm. Indrajit and Debabala agreed to devote attention to the work of the partnership firm as was required of them to do: Whether these factors form consideration ? If so, it is obvious, there is no gift under the laws of the country.