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Issues Involved:
1. Whether the residuary estate of late Shri C. M. Jhaveri or any part thereof passed on the death of his widow, under section 11 of the Estate Duty Act, 1953. 2. Whether the deceased had a life interest in the remainder estate left after discharge of specific legacies, without any discretion in the execution regarding disbursement of the income of the estate. 3. Whether the deceased had an interest in possession in the residuary estate under the will of Shri C. M. Jhaveri. Issue-Wise Detailed Analysis: 1. Passing of Residuary Estate under Section 11 of the Estate Duty Act, 1953: The Tribunal held that the residuary estate of late Shri C. M. Jhaveri passed on the death of his widow, under section 11 of the Estate Duty Act, 1953. The accountable person contended that the deceased was merely a beneficiary under the will and that the executors had discretion over the estate. However, the Tribunal and taxing authorities found that the deceased, Aratgauri, had an absolute life interest in the estate, which passed on her death. The court affirmed this view, stating that the will must be read harmoniously to gather the testator's real intention. The court concluded that the residuary estate passed on the death of Aratgauri, confirming the Tribunal's decision. 2. Life Interest in the Remainder Estate: The Tribunal held that under the will of C. M. Jhaveri, the deceased had a life interest in the remainder estate left after discharge of specific legacies, without any discretion in the execution regarding disbursement of the income of the estate. The accountable person argued that the life interest was not absolute and that the executors had discretion over the estate. The court examined the will and found that the deceased was given a life interest in the estate, with the right to enjoy the income and even alienate the property in case of dire need. The court concluded that the deceased had an absolute life interest in the estate, supporting the Tribunal's decision. 3. Interest in Possession in the Residuary Estate: The Tribunal held that the deceased had an interest in possession in the residuary estate under the will of Shri C. M. Jhaveri. The accountable person argued that the deceased was merely a beneficiary and did not have an absolute life interest. The court analyzed the will and found that the deceased had a life interest in the estate, with the right to enjoy the income and alienate the property in case of dire need. The court concluded that the deceased had an interest in possession in the residuary estate, affirming the Tribunal's decision. Conclusion: The court answered all three questions in the affirmative, against the assessee and in favor of the Revenue. The court found that the residuary estate of late Shri C. M. Jhaveri passed on the death of his widow under section 11 of the Estate Duty Act, 1953, that the deceased had a life interest in the remainder estate without any discretion in the execution regarding disbursement of the income of the estate, and that the deceased had an interest in possession in the residuary estate under the will of Shri C. M. Jhaveri. The court upheld the Tribunal's decisions and dismissed the contentions raised by the accountable person.
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