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Interpretation of s. 10 of the Estate Duty Act, 1953 regarding inclusion of gifted amounts in estate duty assessment. Analysis: The judgment pertains to a case where the Tribunal was asked whether a sum of Rs. 2,29,430 should be included in the estate duty assessment under s. 10 of the Estate Duty Act, 1953. The deceased had made gifts to his daughter and grandchildren by transferring amounts from the firm's current account to the donees' accounts. The Assistant Controller argued that as the deceased remained connected to the gifted amount in the firm until his death, it should be included in the estate. However, the Tribunal, following Supreme Court decisions, held that the benefit to the deceased was not related to the gifts, and thus, the amount should not be included in the estate. The Counsel for the CED relied on a previous High Court decision but also mentioned a recent Supreme Court judgment in a similar case. The Supreme Court's ruling emphasized that for s. 10 to apply, the benefit or enjoyment of the property must be directly linked to the gift. If the benefit is not referable to the gift, then s. 10 does not apply. In the present case, the benefit or enjoyment was not connected to the gifts made by the deceased, leading to the conclusion that s. 10 should not be invoked. The Supreme Court's analysis in another case highlighted that once the donee takes possession of the gifted property, s. 10 would not apply even if the donee later brings the amount into a firm where the deceased was a partner. The key factor is whether the benefit and enjoyment can be traced back to the gift itself. In this scenario, the deceased would be excluded from the enjoyment, preventing the application of s. 10. In conclusion, the Tribunal's decision was upheld, and the gifted amount was deemed not includible in the estate duty assessment under s. 10 of the Act. The judgment clarifies that for s. 10 to apply, the benefit or enjoyment must be directly attributable to the gift, and if not, the deceased would be excluded from the enjoyment, thereby excluding the application of s. 10.
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