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: (i) Whether the gifted house property at Afzal Manzil was liable to be included in the deceased's estate under section 10 of the Estate Duty Act, 1953; (ii) Whether the house at Khialiganj was liable to be included in the deceased's estate on the footing that it was benami property of the deceased.
Issue (i): Whether the gifted house property at Afzal Manzil was liable to be included in the deceased's estate under section 10 of the Estate Duty Act, 1953.
Analysis: Section 10 applies where property taken under a gift is not immediately assumed and retained by the donee to the entire exclusion of the donor or of any benefit to the donor. The donor's continued residence in the gifted house showed that the donee was not in exclusive possession and enjoyment within the meaning of the section. The later statutory proviso concerning residence in a house gifted to close relatives had no retrospective operation and did not govern the case.
Conclusion: The house at Afzal Manzil was rightly included in the estate and the issue was answered against the assessee and in favour of the Revenue.
Issue (ii): Whether the house at Khialiganj was liable to be included in the deceased's estate on the footing that it was benami property of the deceased.
Analysis: The finding that the property stood in the name of the daughter but was in truth purchased and enjoyed by the deceased was an inference from facts amounting to a benami finding. Such an inference was treated as a pure question of fact, not open to challenge in a reference under the governing provision. The deceased's conduct in getting the property mutated in his name and including its income in his own returns supported the finding.
Conclusion: The inclusion of the Khialiganj property was upheld and the issue was answered against the assessee and in favour of the Revenue.
Final Conclusion: The reference was answered in favour of the Revenue on the two properties in dispute that were substantively examined, while no answer was returned on the third property.
Ratio Decidendi: For section 10 of the Estate Duty Act, 1953, a gifted house is deemed to pass on death if the donor is not entirely excluded from possession and enjoyment; and a finding that property is benami is a factual inference not ordinarily open in reference jurisdiction.
TaxTMI 
