TaxTMI 
TaxTMI 
1987 (2) TMI 90
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....r was whether the aforesaid amount of Rs. 1,57,440 could be brought to levy under the Estate Duty Act, 1953 ('the Act'). For this purpose, the Assistant Controller examined the provisions of sections 5,6, and 7 of the Act and first of all came to the conclusions that there was no passing of property under section 5. He next ruled out section 6 by holding that the deceased was not competent to dispose of the property being a minor at the time of his death. The Assistant Controller, however, was of the opinion that the case fell within the provisions of Section 7. His reasons for doing so are as under: "In this case the deceased person though minor had an interest in the policy money, because the policy was assured in his name. On attainin....
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....he proceeds of the policies were to be considered as the estate of the proposer and amounts thereof to be paid to him. (4) It was only if the assured died after attaining the age of majority that the policy monies would be payable to the assured as the policies would vest in him. (5) As the assured had died prior to attaining majority there was no question of any property passing on death or being subjected to levy of estate duty. 5. The learned counsel in support of his arguments also referred to the relevant documents forming a part of his paper book. This contained the photo copies of the insurance policies as well as other connected documents. He drew our attention specifically to a letter dated 25-2-1984 on page 8 sent by the ....
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....aid to him. It was only if the assured died after attaining majority that the policy monies would vest in him. All these facts are borne out by the letter dated 25-2-1984 addressed by the LIC to the Assistant Controller and a copy having been placed at page 8 of the paper book. The same is reproduced as under: "With reference to your letter No. ED-1/8-12/1981-82 dated 15-2-1984 we have to inform you that the abovesaid three policies were taken on the life of Mr. Bhavesh by his father Shri Nathalal Maneklal when the son was of age 15. As per the terms and conditions of the policy contracts the policies shall vest in favour of the life assured Mr. Bhavesh on his attaining the age 18. Till that time the proposer Shri Nathalal Maneklal was t....
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.... on the deceased death of the extent to which a benefit accrues or arises by the cessor of such interest, ..." (balance portion not relevant for our purpose). 10. According to us these provisions would not apply as the deceased had absolutely no interest in the policies which could have said to cease on his death. This could have been the situation after he had attained majority and then died. 11. We would at this stage also, refer to the special clause 52A attached to and forming a part of the policies which reads as under: "To whom the sum assured payable: If the life assured attains the age of majority and if no applicable for surrendering the policy has been received from the person entitled to the policy moneys before the d....