Beneficial interest in property for estate duty depends on proof of subsisting ownership, not mere contribution from earnings.

Mere contribution from a husband's earnings toward acquisition of property does not, by itself, establish a beneficial interest for estate duty purposes. The decisive question is whether the deceased retained subsisting beneficial ownership or enjoyment of the properties. Where the properties were assessed only in the wife's hands, there was no material showing joint receipt or enjoyment of income, and the wife's unilateral settlement of one property during the deceased's lifetime supported exclusive ownership by her, the deceased was treated as having no beneficial interest. On those facts, 50% of the value of the two house properties was not includible in the dutiable estate.

---

---

Issues: Whether 50% of the value of the two house properties stood includible in the dutiable estate of the deceased on the footing that he had a beneficial interest in them.

Analysis: The fact that the properties were acquired out of the joint earnings of the spouses, or that the wife had written to the income-tax department that half the contribution came from the husband's earnings, did not by itself establish that the deceased retained any beneficial interest. The decisive question was whether the deceased had any subsisting beneficial ownership or enjoyment of the properties. The properties were assessed only in the wife's hands, there was no material to show that the income was credited to a joint account or enjoyed by the deceased, and the wife's unilateral settlement of one property during the deceased's lifetime supported the inference that she treated the property as exclusively her own. On these facts, the deceased was found to have no beneficial interest in either property.

Conclusion: The question was answered in the negative to the revenue and in favour of the accountable person; 50% of the value of the two properties was not includible in the dutiable estate.

Ratio Decidendi: Mere contribution from a husband's earnings towards acquisition of property does not make that property part of his dutiable estate unless a subsisting beneficial interest or ownership in his favour is proved.

---