Retained beneficial interest in dedicated property can trigger estate duty inclusion under section 10.

Property dedicated to a deity under an arpannama was treated as passing on death under section 10 of the Estate Duty Act, 1953 because the settlor had not fully excluded himself from beneficial enjoyment. The deed was read as a whole, and the reserved right of residence in the house where the deity was installed, together with the settlor's position as shebait, showed continued beneficial interest in the debutter property. As section 10 applies unless the donee or deity retains bona fide possession and enjoyment to the entire exclusion of the donor, the dedicated properties were includible in the deceased's estate.

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Issues: Whether the properties dedicated under the arpannama dated 12 December 1938 were liable to be included in the deceased's estate as property deemed to pass on death under section 10 of the Estate Duty Act, 1953, having regard to the settlor's retention of a right of residence and his position as shebait.

Analysis: The deed had to be construed as a whole to ascertain the settlor's intention. The reservation of residence in the house where the deity was installed, and the settlor's constitution of himself as shebait, showed that he had not divested himself of all beneficial interest in the endowed property. A shebait under Hindu law is not a mere office-holder; the office carries with it a beneficial interest in the debutter property. Section 10 is attracted unless the donee or deity obtains and retains bona fide possession and enjoyment to the entire exclusion of the donor. Even apart from the express residence right, the settlor's position as shebait meant that some beneficial enjoyment remained with him.

Conclusion: The dedicated properties were correctly held to have passed on the deceased's death within section 10 and were includible in the estate.

Ratio Decidendi: Where a settlor dedicates property to a deity but retains a beneficial interest, including through a reserved right of residence or by constituting himself shebait, the property is not held to the entire exclusion of the donor and is deemed to pass on death under section 10 of the Estate Duty Act, 1953.

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