Estate duty exemption applies only to property already chargeable under the Act; gifted amount was outside the charge.

Section 33(1)(o) of the Estate Duty Act operates only where the property is already chargeable to estate duty under the Act's charging provisions. The gifts made by the deceased were not shown to fall within sections 8, 9 or 10, so the gifted amount was not brought within the estate duty charge. As a result, the exemption question did not arise and section 33(1)(o) was held inapplicable on the facts, with the reference answered in favour of the Revenue.

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Issues: Whether the exemption under section 33(1)(o) of the Estate Duty Act is attracted only when the property is otherwise chargeable to estate duty, and whether the gifted amount could be brought within the estate for that purpose.

Analysis: The Court held that section 33 deals with exemptions and can operate only when estate duty is otherwise payable on property chargeable under the Act. The gifts made by the deceased were not shown to fall within sections 8, 9 or 10 of the Estate Duty Act so as to make the gifted amount chargeable to estate duty. In the absence of a provision bringing the gift within the charge, the question of applying the exemption provision under section 33(1)(o) did not arise.

Conclusion: Section 33(1)(o) of the Estate Duty Act was held not to be attracted in the facts of the case. The reference was answered in favour of the Revenue.

Ratio Decidendi: An exemption provision under the Estate Duty Act applies only where the property is already chargeable to estate duty under the charging provisions of the Act.

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