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Issues: Liability of two properties in deceased's estate under E.D. Act, 1953 - Interpretation of conditions of gift deeds - Inclusion of properties in chargeable estate - Application of first prov. to s. 10 of the Act.
Analysis: The case revolves around the liability of two properties belonging to the deceased under the E.D. Act, 1953. The deceased had gifted a house each to his grandsons and son under registered deeds of gift, with a reservation for him and his wife to reside in the properties during their lifetime. The question arose whether these properties should be included in the chargeable estate. The Assistant Controller, Appellate Controller, and Tribunal all included the properties for estate duty. The main issue was whether the properties fulfilled the conditions for inclusion under the Act. Regarding the property gifted to the grandsons (item No. 9), it was rightfully included in the estate duty assessment as the donor continued to reside there until his death. The donee did not retain exclusive possession and enjoyment, justifying its inclusion in the chargeable estate. However, concerning the property gifted to the son (item No. 8), it was found that neither the donor nor his wife resided there after the gift, and the donees were in actual possession. The court held that the first prov. to s. 10 of the Act applied in this case. The circumstances indicated that the donees retained possession and enjoyment to the exclusion of the donor for over two years before his death. Therefore, the property did not pass on the donor's death, and its value should have been excluded from the estate liable for duty. In conclusion, the court answered the referred question affirmatively for property No. 9 and negatively for property No. 8, emphasizing the importance of the specific circumstances and application of the relevant provisions of the E.D. Act, 1953 in determining the inclusion of properties in the chargeable estate.
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