1991 (5) TMI 86 - AT - Income Tax

Summary

Issues:
1. Determination of deceased's domicile at the time of death.
2. Inclusion or exclusion of movable property of the deceased located outside India in the estate.

Detailed Analysis:

1. Determination of deceased's domicile at the time of death:
The judgment revolves around the issue of determining the domicile of the deceased at the time of his death. The deceased, born in a princely State outside British India, migrated to Kenya, a British Colony, where he acquired British citizenship in 1951. The deceased had two sons, one residing in India and the other in the UK. The deceased also held a British passport and had various familial connections in Kenya and London. The question was whether the deceased was domiciled in India at the time of his death, considering his life span, actions, and movements. The distinction between citizenship, residence, and domicile was crucial in understanding the deceased's status in India.

2. Inclusion or exclusion of movable property in the estate:
The Asstt. Controller of Estate Duty (ACED) initially excluded the deceased's movable property in the UK from the estate, but the decision was challenged by the Appellate Controller of Estate Duty, Rajkot (CED). The legal framework under Section 21(1) of the Estate Duty Act, 1953, was examined, which states that movable property outside India is not included in the estate if the deceased was not domiciled in India at the time of death. The judgment analyzed the deceased's actions, like acquiring British citizenship, residing in Kenya and the UK, and executing a will in Nairobi, to determine his domicile. The deceased's investments in India and the purchase of a plot in Morvi were considered insufficient proof of his intention to regain his domicile of origin in India.

In conclusion, the appellate tribunal held that the deceased was not domiciled in India at the time of his death, based on his actions and intentions, and therefore, the movable property located outside India was excluded from the estate. The appeal was allowed, and the addition of the property in question to the estate was deleted.