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Issues: Whether shares standing in the name of the deceased's wife, but purchased with the deceased's money and treated as his own, were includible in the principal value of the estate passing on his death under the Estate Duty Act.
Analysis: The findings showed that the deceased had supplied the purchase money, the income from the shares was treated as his income, and the wife held only nominal title. In a benami transaction, the benamidar has only nominal ownership while the real title remains with the person who provided the consideration. The statutory scheme of the Estate Duty Act distinguishes between property that actually passes on death and property deemed to pass on death. Section 5(1) is the charging provision for property that passes on death, and section 6 is intended to enlarge the field by bringing in certain interests or powers that do not in fact pass. Where the deceased had the real title, the property passed on his death within section 5(1), and section 6 did not control the case.
Conclusion: The shares were rightly included in the principal value of the estate and the reference was answered against the accountable person.
Ratio Decidendi: In a benami holding, the person who furnishes the consideration and retains real ownership is treated as the owner for estate duty purposes, and such property passes on death under the charging provision notwithstanding that it stands in another's name.
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