Estate duty on released property fails where the deceased retained no charge, interest, or occupation after the release deed.

Property absolutely released in favour of the deceased's sons before her death, without any retained charge for maintenance or continuing occupation, was held not to pass on death for estate duty purposes. The claimed inference that maintenance had been met from income of the property was rejected as conjectural and unsupported. In the absence of any subsisting interest in the Ghodbunder Road property, the deceased's one-third share could not be included in her estate, and ambiguity in the charging provision was resolved in favour of the assessee.

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Issues: Whether one-third share of the deceased in the Ghodbunder Road property passed on her death and was includible in her estate.

Analysis: The property had been released in favour of the sons more than two years before the deceased's death. No charge was created on that property for the deceased's maintenance, and the deceased did not continue in occupation of it after the release deed. The inference that maintenance payments must have been met from the income of that property was found to be conjectural and unsupported. In the absence of any retained interest or charge, the share could not be treated as passing on death.

Conclusion: The question was answered in the negative, in favour of the assessee and against the Revenue.

Ratio Decidendi: Property absolutely released during the lifetime of the deceased, without any retained charge or interest, does not pass on death for estate duty purposes; ambiguity in the charging provision must be resolved in favour of the assessee.

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