Religious trust properties excluded from estate duty where deed showed irrevocable dedication and only incidental family benefits.

The trust deed was construed as a whole to determine whether the settlor had made an absolute dedication of the properties to the deities or retained a beneficial interest. The dominant object was irrevocable vesting of the properties in trustees for religious worship, and the incidental benefits provided to trustees and family members were held too trifling to negate the trust's validity on the facts. Accordingly, the properties comprised in the Jagadhatri Sampad Trust were not includible in the deceased's estate as property passing on death under section 5 of the Estate Duty Act, 1953.

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Issues: Whether the properties comprised in the Jagadhatri Sampad Trust were correctly included in the estate of the deceased as property passing on his death under section 5 of the Estate Duty Act, 1953.

Analysis: The trust deed had to be construed as a whole to determine whether there was an absolute dedication to the deities or only a partial arrangement with a reserved beneficial interest. The directions in the deed showed that the settlor intended to vest the properties in trustees irrevocably for religious purposes, with the worship of the idols as the dominant object. The fact that some ancillary benefits were provided for trustees and family members did not, on the facts of this case, negate the validity of the trust, especially where the benefits were trifling in relation to the whole income and no surplus was reserved for family enjoyment in the manner found in the authorities relied on by the revenue.

Conclusion: The properties comprised in the Jagadhatri Sampad Trust were not correctly included in the estate of the deceased as property passing on his death under section 5 of the Estate Duty Act, 1953.

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