TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the sum of Rs. 60,000 gifted by the deceased to his sons was includible in the estate of the deceased as property deemed to pass on his death under section 10 of the Estate Duty Act, 1953.
Analysis: For section 10 to apply, the donee must assume possession and enjoyment of the gifted property bona fide and retain it to the entire exclusion of the donor or of any benefit to him by contract or otherwise. The decisive enquiry is whether the donor was in fact excluded from the subject-matter of the gift. On the facts found, the gifts to the sons were absolute, the sons invested the amounts for their own benefit, and the donor derived no benefit from the gifted sums merely because they were used in the business. The material findings established that the donees had possession and enjoyment of the gifted property and that the donor was excluded from any benefit in respect of it.
Conclusion: The sum of Rs. 60,000 was not includible in the estate of the deceased under section 10 of the Estate Duty Act, 1953, and the answer was in favour of the assessee.
Ratio Decidendi: A gift is excluded from estate duty under section 10 where the donee bona fide assumes and retains possession and enjoyment of the gifted property to the entire exclusion of the donor, and mere use of the gifted money by the donee in his own business does not by itself amount to a benefit reserved to the donor.
TaxTMI 
