Beneficial enjoyment under trust law does not create estate duty where death only enlarges an existing beneficiary's right.

Estate duty under section 5 of the Estate Duty Act arises only when property passes on death through a real change in beneficial possession or enjoyment. On the trust deed, the deceased had no beneficial interest in either the corpus or the income, and the true beneficiary was Amina Marzia from the outset. The deceased's death did not divest one beneficiary in favour of another; it only enlarged Amina Marzia's direct right to enjoy the income. As the same beneficial interest continued before and after death, no property passed on death and estate duty was not leviable.

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Issues: Whether the corpus of 20 units and the accumulations of income therefrom passed on the death of Dulhan Pasha Begum so as to attract estate duty under the charging provision.

Analysis: The charge under section 5 of the Estate Duty Act arises only when property passes on the death of a person. The relevant inquiry is whether there is an actual change in beneficial possession or enjoyment of the property at death. On the trust deed, Dulhan Pasha Begum had no beneficial interest in the corpus or income; the real beneficiary was Amina Marzia. Amina's interest in the income existed from the inception of the trust. The death of Dulhan Pasha Begum did not terminate that interest or transfer the property to a new beneficiary. At most, it enlarged Amina Marzia's right to enjoy the income directly, while her beneficial interest remained the same before and after the death.

Conclusion: No property passed on the death of Dulhan Pasha Begum and estate duty was not leviable under section 5 of the Estate Duty Act; the answer is in favour of the assessee.

Ratio Decidendi: Where the same beneficiary remains in beneficial enjoyment of the property both before and after death, a mere enlargement or alteration of the mode of enjoyment does not amount to a passing of property on death for estate duty purposes.

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