Estate duty exclusion under section 10 turns on exclusion from possession and enjoyment of gifted property.

Amounts transferred by the deceased to his children's accounts, but retained in the partnership business, were examined under the exclusion in section 10 of the Estate Duty Act, 1953. The controlling question was whether the deceased had been wholly excluded from possession and enjoyment of the gifted property and from the benefit arising from it. Applying the Court's earlier ruling on the same issue, the Court declined to reopen the point and held that the transferred amount was not chargeable to estate duty under section 10. The assessee therefore succeeded.

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Issues: Whether the amount transferred by the deceased to the accounts of his children, but retained in the partnership business, was liable to estate duty under section 10 of the Estate Duty Act, 1953.

Analysis: The transferred amounts continued in the partnership business and were used in its money-lending activities, but the governing question was whether the deceased had been entirely excluded from possession and enjoyment of the gifted property and from the benefit arising therefrom. The issue was held to be covered by the Court's earlier decision on the same legal question, and the contention that reconsideration was required was not accepted.

Conclusion: The amount was not liable to estate duty under section 10, and the assessee succeeded.

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