1989 (3) TMI 47

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....the estate, as property passing on the death of the deceased?" The assessment to estate duty arose on the death of one T. C. Issac on December 10, 1970. The deceased had executed a settlement deed in 1949, annexure D, dated 30-11-1124 (M. E.), in favour of his children. There was a reservation in the deed stating that the donees shall pay out of the income of the said properties to the donor and his wife annually an amount of Rs. 1,200 and 200 paras of paddy. It was further stipulated that the payment should be made to the donor during his lifetime and there after to his widow until her death. The deed contained the stipulation that in case any one of the donees failed to discharge the obligation cast on them, the donor can proceed again....

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.... principle laid down by the Allahabad High Court in K. C. Srivastava v. CED [1979] 117 ITR 221, the Appellate Tribunal held that the deceased donor was not entirely excluded from possession and enjoyment of the gifted properties and so the value of the entire properties under the settlement deed should be included in the estate of the deceased for the purpose of estate duty. It is thereafter, on motion by the accountable person, that the Appellate Tribunal has referred the above formulated question of law for the decision of this court. We heard counsel for the accountable person (applicant) as also counsel for the Revenue. Annexure "D" is the settlement deed dated 30-11-1124 (M.E.). The provisions therein are categoric in holding that t....