Book entries alone do not complete a gift where possession and enjoyment never pass to the donee exclusively.

Mere book entries in the donor's own accounts do not by themselves complete a gift for estate duty purposes. Under section 10 of the Estate Duty Act, the gifted property is excluded from the estate only if the donee bona fide assumes possession and enjoyment and retains it to the donor's entire exclusion. Where the donor continues to retain benefit, including treatment of income in his own tax assessments, and there is no separate document or act showing transfer of dominion, the statutory exclusion is not satisfied. The property therefore remains includible in the estate.

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Issues: Whether the sum standing in the name of the deceased's wife was excludible from the estate, and whether mere book entries amounted to a completed gift so as to prevent inclusion under section 10 of the Estate Duty Act, 1953.

Analysis: The amount had continued to stand in the deceased's books for years, but there was no evidence that the donee had immediately assumed bona fide possession and enjoyment of the property. The decisive test under section 10 is cumulative: the donee must take possession and enjoy the gifted property to the entire exclusion of the donor and any benefit to him. Mere entries in the donor's own books, without delivery or transfer of dominion, do not by themselves complete a gift or satisfy the statutory requirement. On the facts, the donor continued to retain the benefit, including the treatment of interest in his income-tax assessments, and the alleged gift was not established by any document or act showing exclusion of the donor.

Conclusion: The amount was not excluded from the estate and was liable to be included for estate duty purposes. The reference was answered against the accountable person and in favour of the Revenue.

Final Conclusion: The statutory conditions for excluding gifted property from the estate were not met because possession and enjoyment were not transferred and retained to the donor's entire exclusion.

Ratio Decidendi: A transfer reflected only by entries in the donor's own books does not amount to a valid gift for estate duty purposes unless the donee has bona fide assumed possession and enjoyment and thereafter retained the property to the donor's entire exclusion.

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