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TMI Blog1992 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Whether, on the facts and in the circumstances of the case, the deceased Aratgauri had interest in possession in the residuary estate under the will of Shri C. M. Jhaveri?" The facts in the background of the present reference do not appear to be much in dispute, as the questions in controversy revolve around the interpretation and construction of the last will and testament of the testator, with a view to gather his correct and real intent behind the testamentary disposition. One Shri C. M. Jhaveri, by his last will and testament dated November 28, 1946, had bequeathed all his properties to his wife, Smt. Aratgauri, for her life, without the power of alienation, except for dire need as per clause 11 of the will. According to clause 12 of the said will, he had appointed his two sons, Vaikunthlal and Krishnalal, as the executors Of this estate. The deceased testator had also made provision for his widowed daughter and her son and for the marriage, etc., of his youngest unmarried daughter, Shakuntala, as per clauses Nos. 14 and 15 of the said will. He had also directed under clause No. 17 of the said will that, on his wife's death, his two sons, Vaikunthlal and Krishnalal, wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt provisions of the Act on the death of the deceased, Aratgauri. The abovesaid contentions raised by the accountable person came to be negatived by the First Assistant Controller of Estate Duty, Ahmedabad, by the assessment orders dated March 23, 1974. Thus the principal value of the estate which, according to the taxing authority, passed on the death of the deceased, Smt. Aratgauri, was assessed at Rs. 5,11,000. The abovesaid assessment order came to be challenged by the accountable person by filing an appeal before the Appellate Controller, Estate Duty, Gujarat at Ahmedabad. Similar contentions were raised during the hearing of the appeal on behalf of the accountable person. Anyhow the Appellate Controller of Estate Duty had taken the view that, upon a harmonious reading of the will, it clearly emerges that the deceased, Shri C. M. Jhaveri, had bequeathed specific and ascertained amount of legacies to several of his relations who have been specifically named in the will, and that, the balance of the properties left after such legacies were to go to the wife. Aratgauri, along with the specific bequest in a sum of Rs. 10,000. Reading the relevant clauses of the will of the decease ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Mr. Shah has further contended that the taxing authorities had committed an error in coming to the conclusion that the deceased was given an absolute interest in the estate of the deceased and that the same passed to the accountable person on the death of the deceased, Smt. Aratgauri. But Mr. Thakore, learned counsel who appears on behalf of the Revenue, has urged that, as pointed out by the Tribunal and the taxing authorities below, the will of the deceased requires to be read harmoniously and when it is so read, it becomes clear that the deceased, Aratgauri, was given an absolute life interest in the estate of her husband, and that, merely because some provisions were made for the two daughters of the deceased, Shri C. M., it cannot be said that the life interest was not absolute. Mr. Thakore has also, arguing in the same line, contended that, because of the abovesaid factual position, it could not be successfully was merely a beneficiary under the will. As indicated by us above, the contention of the accountable person before the taxing authority was that the life interest given to, the deceased, Aratgauri, was not an absolute one. It "requires to be appreciated that no cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 16 of the will with a view to canvass the contention that the deceased was a mere beneficiary under the will and that she was not given absolute life interest in the estate of the deceased. Clause No. 12 of the will speaks of the appointment of the two sons, Vaikunthlal and Krishnalal, as the executors of the estate. It is made clear in clause 12 that the abovesaid two executors shall first pay up the liabilities of the deceased and thereafter shall manage the estate during the lifetime of the deceased, Aratgauri, in the same way as the deceased testator used to do during his lifetime. This clause No. 12, therefore, would only go to show that the two sons, namely, Vaikunthlal and Krishnalal, were to act as the executors of the estate and that they were required to discharge the liabilities of the deceased first and thereafter they were required to manage the estate during the lifetime of the deceased, Aratgauri. This clause, therefore, on the contrary, would go to show that the deceased, Aratgauri, was given a life interest in the estate of the deceased which she was to enjoy during her lifetime. Clause No. 14 of the will says that the son-in-law of the deceased, Shri C. M. Jh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made specific and clear, as has been done in the previous clause also, that if the income of the corpus of an amount of Rs. 20,000 is not being utilised for the said purpose, the same shall revert to the wife's life interest in the property left behind by the deceased, Shri C. M. Jhaveri. Therefore, both the abovesaid clauses, namely, clauses Nos. 15 and 16 on which Mr. Shah has placed heavy reliance, would go to show that two "trusts" were created by the said clauses for an amount of Rs. 15,000 and Rs. 20,000 for the widowed daughter and her son and for the unmarried daughter, respectively. The reference to the word "corpus" cannot be understood as connoting the entire corpus or the life interest which was being bequeathed to the deceased, Aratgauri, by her husband. Upon close reading of the entire will and especially all the aforementioned relevant clauses and upon a proper construction thereof it becomes clear that the deceased was given life interest in the property and that, it was an absolute life interest. Ordinarily, she was to enjoy the outcome or the income of the life interest, but in case of dire need, she was also entitled to alienate the life interest which was b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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