MADAN LAL Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference by the Central Board of Revenue under Section 64(1) of the Estate Duty Act, 1953, hereinafter called the Act. The statement of the case submitted by the Central Board of Revenue discloses the following facts which have given rise to this reference:

(2.) PARAGRAPH 4 mentions that there is a tobacco business in the name and style of Sukhdeo Gopinath which will be a partnership affair of parties Nos. 2 to 5. The contents of other paragraphs have no relevance and they therefore need not be mentioned here. This deed is signed by all the five parties and was registered on 13th of January, 1941. It may be mentioned that the properties for which estate duty is held to be chargeable has nothing to do with the properties which had been given to the sons by the father under the partition deed. The estate duty is being charged on the property which Sukhdeo owned under paragraph 3 or those which he had acquired by his assets after the year 1941. It may be further mentioned that after the year 1941, several mortgage deeds had been executed for various amounts by the debtors mortgaging their property to Sukhdeo and his sons and these mortgage deeds have been included in the property of the deceased. Further facts are that on 3rd July, 1947, the deceased had withdrawn Rs. 20,000 from his account in the partnership concern of Messrs. Sukhdeo Gopinath (which carried on tobacco business) and deposited this amount of Rs. 20,000 in the names of his four daughters-in-law in the account books of Messrs. Sukhdeo Daudas, the deposit amount of each daughter-in-law being Rs. 5,000.

(3.) IN Jetharam v. Hazarimal, [1951] I.L.R. 1 Raj. 417 ; A.I.R. 1952 Raj. 28 the test as to when the self acquired property became joint family property was laid down in these words :