9911796707
TMI Blog1987 (4) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... h as giving of monetary help to needy and worthy students by giving scholarships, loans against guarantee of repayment or against some security for the study of religion, philosophy, etc. Clause (13) of the deed empowered the settlor, i.e., the deceased, to make changes in the temporary objects and even to cancel some of them with a provision that savings caused on account thereof would be expended on permanent objects only. The Assistant Controller of Estate Duty rejected the claim of the accountable person that the value of the properties settled on trust was not includible in the principal value of the estate of the deceased. According to him, the value of the trust property was includible in the principal value of the estate of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the deceased's close relatives. Section 12(1) of the Estate Duty Act, 1953, reads as under: " 12. (1) Property passing under any settlement made by the deceased by deed or any other instrument not taking effect as a will whereby an interest in such property for life or any other period determinable by reference to death is reserved either expressly or by implication to the settlor or whereby the settlor may have reserved to himself the right by the exercise of any power, to restore to himself or to reclaim the absolute interest in such property shall be deemed to pass on the settlor's death : ... Explanation.-A settlor reserving an interest in the settled property for the maintenance of himself and any of his relatives (as defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the settlor or any of his relatives will bring the case within the mischief of the Explanation. In other words, Shri Dhanuka wants us to read the word " and " as " or " used in the Explanation, though he fairly stated that the Gujarat High Court in the case of Kikabhai Samsuddin v. CED [1969] 73 ITR 241 (Guj) and the Madras High Court in CED v. K. A. Kader [1974] 96 ITR 289 (.Mad), had taken the view that the word " and " used in the Explanation had to be read as " and " only and not as " or ". He, however, stated that if the deceased had reserved some interest in the property settled on trust for himself, sub-section (1) itself would have applied and, therefore, the reasonable construction of the Explanation would be to read and " a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
