Completed gifts of movable property are not deferred by minority or maturity, limiting estate duty inclusion of gifted assets.

A gift of movable property is complete when a voluntary transfer without consideration is effected, and completion is not postponed by the donee's minority, the maturity of the bonds, or any later contingency. On that basis, gifts of gold bonds made during the deceased's lifetime were treated as complete when declared and outside the reach of section 9 of the Estate Duty Act, 1953. The same principle applied to the partnership goodwill arrangement: the deceased's beneficial share was limited on the facts, and the alleged gift of goodwill to a minor was complete when made, so sections 9 and 10 did not justify enlarging the principal value of the estate.

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Issues: (i) Whether the gifts of gold bonds made by the deceased were complete on the dates of the declarations or became complete only on the donees attaining majority or on maturity of the bonds, so as to attract section 9 of the Estate Duty Act, 1953. (ii) Whether the deceased's share in the goodwill of the partnership firm, and the alleged gift of a share in that goodwill, could be treated as property deemed to pass on death under sections 9 and 10 of the Estate Duty Act, 1953.

Issue (i): Whether the gifts of gold bonds made by the deceased were complete on the dates of the declarations or became complete only on the donees attaining majority or on maturity of the bonds, so as to attract section 9 of the Estate Duty Act, 1953.

Analysis: The gift of movable property is complete when there is a voluntary transfer without consideration. The declarations in favour of the donees were made well before the death of the deceased, and the later maturity of the bonds or the later attainment of majority by one donee did not postpone the completion of the transfer. Section 9 was concerned with gifts made within the relevant statutory period, and on the facts the gifts had already been completed outside that period.

Conclusion: The gifts of gold bonds were complete on the dates they were made and were not liable to be treated as property passing on death. This issue was decided in favour of the assessee.

Issue (ii): Whether the deceased's share in the goodwill of the partnership firm, and the alleged gift of a share in that goodwill, could be treated as property deemed to pass on death under sections 9 and 10 of the Estate Duty Act, 1953.

Analysis: The partnership deed and the surrounding declarations showed that the retiring partner retained a 50 per cent interest in the firm's goodwill, while the deceased's beneficial share in that goodwill was only 1/16th though her profit share was 1/8th. The gift in favour of the minor admitted to the benefits of partnership was complete when made, and the minor's later attainment of majority did not alter that completeness. The transaction therefore did not attract the deeming provisions relied on by the Revenue.

Conclusion: The inclusion of a larger share of goodwill in the principal value was not justified, and the Revenue's contention failed. This issue was decided in favour of the assessee.

Final Conclusion: The reference was answered by holding that the disputed gifts had been completed during the deceased's lifetime and that the valuation of the estate could not be enlarged on the basis urged by the Revenue.

Ratio Decidendi: A gift is complete when a voluntary transfer without consideration is effected, and its completion is not postponed by the donee's minority, the maturity of the subject-matter, or other later contingencies; such completed transfers do not attract the deeming provisions for property passing on death.

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