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TMI Blog1969 (2) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... cial trustee declared the value of the deceased's estate at Rs. 7,47,682. Among other items; the question was whether the estate included two loans of Rs. 13,000 and Rs. 4,000 respectively, which the deceased had given to his niece and niece-in-law. These loans appear to have been given between April 1, 1956, and March 31, 1957. The deceased himself, in his wealth statement for the year ended March 31, 1957, included the two sums and stated that his niece and niece-in-law might or might not pay back the amounts. In his subsequent wealth statements also, the two sums were included, the last of which was filed on November 7, 1959, for the year ended March 31, 1959. They were, therefore, till then, not treated by the deceased as gifts made to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence arises of the following question : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the amounts of Rs. 13,000 and Rs. 4,000 were not includible in the principal value of the estate ? " In our opinion, the Tribunal's conclusion is correct. The whole question will turn on the scope of Explanation, 2 to section 2(15). That sub-section is an inclusive definition of " property ", and the second Explanation supplements or adds to the inclusion. It reads as follows : " The extinguishment at the expense of the deceased of a debt or other right shall be deemed to have been a disposition made by the deceased in favour of the person for whose benefit the debt or right was extinguished, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is brought about, whether it is by conscious act of the deceased, or by his inaction, or by operation of law. But the words that follow which provide for the deeming, we are inclined to think, are only confined to deeming of an extinguishment as a disposition and do not extend to the assumption that where a disposition is not made by the deceased, it should also be deemed to have been made by him. It looks as if the legislature, in the Explanation, has avoided repetition of the words " made by the deceased ", after the words " the extinguishment ". In our opinion, the words, " made by the deceased qualify also the words " the extinguishment ". The intention of sub-section ( 15) of section 2 is no doubt to enlarge the scope and content of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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