TaxTMI 
TaxTMI 
1968 (11) TMI 23
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....ision of section 10 were attracted ? " The facts, as narrated in the statement of the case, are that the applicant who was a son of the deceased, late Inayatur Rahaman Khan, who died on June 25, 1958, submitted a statement of account before the Assistant Controller of Estate Duty, declaring the principal value of the estate of the deceased at Rs. 38,637. The Assistant Controller determined the principal value of the estate at Rs. 1,49,937. The principal value so determined included a sum of Rs. 45,000 being the value of six house properties at Secunderabad. It was claimed before the Assistant Controller that the deceased had transferred these house properties to his sons and daugthers by oral gift known as hiba under Mohommadan law, more t....
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....ther the income-tax authorities were right in holding that the donor continued to be in possession and enjoyment of the properties gifted to his sons and daughters. This question, in our view, is one of fact to be determined from the facts and circumstances of each case. The learned advocate for the assessee has taken us through the statement of Faru Ahmed, son of the donor, in which he said that he used to collect rents from all the properties and hand them over to his elder brother, Mumtaz Ahmed Khan, who after defraying expenses such as municipal taxes etc., used to spend the rest of the money on maintenance of the family consisting of all brothers, sisters, till their marriage and his late father, that there are accounts maintained and ....
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....income was utilised to meet the expense of his late father. It is clear, however, that, as the Central Board of Direct Taxes observed, the children to whom the gift was made by the donor did not enjoy the property to the entire exclusion of the donor which is also one of the requirements under section 10 for excluding the gifted properties from the estate of the deceased. Section 10 of the Estate Duty Act is as follows : " Gifts whenever made where donor not entirely excluded. --Property taken under any gift, whenever made, shall be deemed to pass on the donor's death to the extent that bona fide possession and enjoyment of it was not immediately assumed by the donee and thenceforward retained to the entire exclusion of the donor or of an....