1987 (4) TMI 32

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..... ers under the Portuguese Law under a decree dated December 16, 1880. The society was reconstituted as per the deed dated February 20, 1930, between Srinivas and his wife, Satiabamabai, on the one hand, and Vitola and his wife, Rocumbai, on the other, each group having 50% share. As per a subsequent deed dated April 22, 1950, the deceased and his wife had jointly gifted half of their shares to thei .....

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..... ,75,000 and included the said amount in the dutiable estate of the deceased. The inclusion was confirmed by the Appellate Controller of Estate Duty. The Tribunal, however, deleted the inclusion. The following question of law has been referred to us by the Tribunal at the instance of the Revenue: " Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holdi .....

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..... e possession and enjoyment over the gifted property was not assumed by the donees to the exclusion of the deceased and therefore, the provisions of section 10 of the Estate Duty Act, 1953, were attracted. We do not agree with Shri Dhanuka that by the deed (if gift the deceased had gifted any specific property so that the donees could possess and enjoy the same to the exclusion of the deceased. T .....

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..... s, we find that the Supreme Court's decision in the case of CED v. Godavari Bai [1986] 158 ITR 683, is squarely applicable. The relevant portion of the judgment as extracted in the headnote reads as under: "The question whether gifted property should be regarded as a part of the estate of the deceased donor passing on his death for the purpose of section 10 would depend upon as to what precisely .....

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..... er of the gift will not be deemed to pass on the death of the deceased donor. In other words, if the deceased donor limits the interest he is parting with and possesses or enjoys some benefit in the property not on account of the interest parted with but because of the interest still retained by him, the interest parted with will not be deemed to be a part of the estate of the deceased donor passi .....

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