1984 (6) TMI 11

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....ot No. 4, Avadi Road, Kilpauk, Madras, of the extent of 4 grounds and 610 sq. ft. and whether such beneficial title passed on his death under section 5 of the E.D. Act ? A building site measuring 4 grounds and 610 sq. ft. in Plot No. 4, Avadi Road, Kilpauk, Madras, was purchased under a registered sale deed dated May 25, 1963, in the name of Smt. Hemibai Mangharam, wife of Menghraj Thakurdas. The said Menghraj Thakurdas died on November 17, 1969. On the ground that the said deceased had provided funds for the purchase of the property in the name of his wife, Hemibai Mangharam, the deceased was taken to be a beneficial owner of the said property in the estate duty assessment. The Assistant Controller added the market value of the said vac....

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....chased is on the purchaser and that so long as the transferee does not prove the intention, the person who provided fund should be taken to be the owner of the property. Aggrieved by the decision of the Tribunal, the accountable person has come to this court by way of this reference. There is no dispute on the facts. The building site measuring four grounds and 610 sq. ft. being Plot No. 4, Avadi Road, Kilpauk, Madras, had been purchased in the name of deceased's wife on May 25, 1963. The funds for the purchase of the said site had been provided by the deceased, the husband of the transferee. The controversy between the parties in this case on these admitted facts is as to whether the deceased provided funds with an intention to benefit ....

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....estion in his wealth. After purchase, at least for the two years, such returns had been filed for the assessment years 1968-69 and 1969-70. If really the deceased had not intended to benefit his wife by way of purchase of the house site in question, he would have shown the same as his own in the wealth-tax return. This in a way indicates that the deceased did not intend to have any beneficial interest in the property in question. On the other hand, the wife, after purchase of this property, has been submitting a return under the Wealth-tax Act, showing the property as hers. This conduct on the part of the wife will also indicate that the husband intended to benefit her by providing funds for the purchase of the property. The conduct of both....