Estate duty inclusion fails where gifted money is later deposited with a concern linked to the deceased.

Section 10 of the Estate Duty Act, 1953 was held not to apply merely because gifted monies were later deposited by the donees with a concern in which the deceased had proprietary and later partnership interest. In light of binding Supreme Court authority, the Tribunal's earlier contrary view was treated as a mistake apparent on the face of the record and was rectified. The gifted sum was therefore excluded from the principal value of the estate, and the Tribunal's deletion of the amount was upheld against the Revenue.

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Issues: Whether the Tribunal was justified in holding that its earlier order suffered from a mistake apparent on the face of the record and in deleting the inclusion of the gifted amount in the principal value of the estate under section 10 of the Estate Duty Act, 1953.

Analysis: The gifts were made by the deceased to his wife and sons, and the amounts were later deposited by the donees with a concern in which the deceased had proprietary and thereafter partnership interest. In the light of the Supreme Court decisions holding that section 10 of the Estate Duty Act, 1953 does not apply merely because the donees deposited the gifted moneys with such a concern, the Tribunal's original contrary view could not stand. The earlier order was therefore liable to be rectified so as to conform to the binding legal position.

Conclusion: The Tribunal rightly held that its earlier order contained a mistake apparent on the face of the record and correctly deleted the sum of Rs. 3,36,000 from the principal value of the estate. The question was answered in the affirmative and against the Revenue.

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