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- Inclusion of amount credited in the Trust-account in the estate of the deceased under s. 10 of the E.D. Act. Analysis: The appeal before the Appellate Tribunal ITAT Jabalpur involved the inclusion of an amount credited in a Trust-account in the estate of the deceased under s. 10 of the E.D. Act. The deceased had created a Trust and transferred a sum of Rs. 25,000 to it, which remained deposited in a firm where the deceased was a partner. The issue was whether the entire sum of Rs. 35,330 credited in the Trust-account should be included in the dutiable estate of the deceased. The Appellate Tribunal considered the arguments presented by both parties regarding the application of legal principles from previous cases and relevant sections of the E.D. Act. The accountable person argued that the lower courts should have applied the principle laid down in Mcono's case instead of Chick's case. The counsel for the appellant relied on the decision of the Supreme Court in CED, Madras vs. No. R. Ramarathanam and others to support this argument. On the other hand, the counsel for the Department contended that the inclusion of the amount in the dutiable estate was justified based on the provisions of s. 10 of the E.D. Act and cited the decision of CED, Madras vs. Smt. Parvai Ammal. After hearing the arguments and examining the cited legal precedents, the Appellate Tribunal held that the lower authorities were not justified in including the amount credited in the Trust-account in the estate of the deceased. The Tribunal referred to various cases with similar factual scenarios where it was established that immediate possession and enjoyment of the gifted property had passed to the donees, leading to a change in dominion over the subject matter of the gifts. Consequently, the Tribunal allowed the appeal, ruling in favor of the accountable person and concluding that the amount should not be included in the estate of the deceased under s. 10 of the E.D. Act.
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