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Issues involved: Interpretation of section 10 of the Estate Duty Act, 1953 regarding inclusion of gifted amounts in the estate of the deceased.
Summary: The High Court of Bombay addressed a question referred by the Tribunal under section 64(1) of the Estate Duty Act, 1953. The deceased had gifted a sum of Rs. 3,36,000 to his wife and sons, which was later deposited with a business in which the deceased had proprietary or partnership interest. The Tribunal initially held the gifted amount as includible in the deceased's estate under section 10 of the Act. However, based on Supreme Court decisions, the Tribunal rectified its order, ruling that the gifted amount should not be included in the estate. The Court analyzed whether the Tribunal's original order had a mistake apparent on the face of the record, considering the Supreme Court decisions that clarified the non-applicability of section 10 to gifts merely deposited in a business of the deceased. Consequently, the Court affirmed the Tribunal's rectification of the order to align with the Supreme Court rulings. In conclusion, the Court answered the question in favor of the accountable person, stating that the gifted amount need not be included in the deceased's estate under section 10. No costs were awarded in this matter.
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