9911796707
|
Home
Issues:
- Inclusion of a deposit made by a deceased partner in a firm in the estate for estate duty assessment under section 10 of the Estate Duty Act, 1953. Detailed Analysis: The case involved a reference under section 64(1) of the Estate Duty Act 1953, regarding the inclusion of a deposit made by a deceased partner, G.D. Anklesaria, in a firm, in the estate for estate duty assessment. The firm had multiple partners, including the deceased and his wife, Smt. Frenibai. The deceased had withdrawn sums of cash from the firm and gifted them to his wife, who later invested the same in the firm as deposits. These deposits were credited to the wife's account in the firm's books and carried interest. The deceased had made these gifts more than two years before his death. The Assistant Controller included the sum of Rs. 1,00,000 in the estate value, relying on section 10 of the Estate Duty Act and a precedent case. The accountable person contended that a different precedent case should apply, where the property gifted was already part of a partnership. The Appellate Controller upheld the inclusion of the amount in the estate, and the accountable person appealed further. The accountable person argued that the principles from a different case should be applied, where property was transferred to a partnership. The department's counsel argued that the nature of the property initially gifted was crucial and requested clarification on the source of the withdrawn sums before a final decision. The court directed the Income-tax Appellate Tribunal to provide a modified statement clarifying from which account the deceased had withdrawn the sums in question. This clarification was deemed necessary to determine the applicability of section 10 of the Estate Duty Act to the case. The court exercised its powers under section 64 of the Act to request the additional statement for a more informed decision. The case was to be listed for further hearing after the modified statement was received. In conclusion, the judgment highlighted the importance of clarifying the source of withdrawn funds before determining the applicability of estate duty provisions. The court emphasized the need for a clear understanding of the financial transactions involved to make a well-informed decision regarding the inclusion of the deposit in the deceased partner's estate for estate duty assessment.
|
