1982 (7) TMI 87

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in the circumstances of the case, the value of the share in the immovable properties gifted by the deceased was liable to be included in the estate of the deceased under section 10 of the Act? " The deceased, Abdulkadar Nanamiya, was the owner of immovable property bearing No. 3/100/154 in Nagpada Street, Bombay. He gifted the whole of his property equally to his wife and three married daughters. The property was in the possession of tenants. The rent received was credited in the joint accounts of the wife and the three daughters in the books of M/s. Abdullabhai Abdul Kadar, in which the deceased, Abdulkadar, was a partner. After debiting the expenses in respect of the said property and keeping apart a reasonable amount for meeting furthe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ue of all the gifted property in the principal value of the estate of the deceased under s. 10 of the E.D. Act. This order was upheld in appeal by the Appellate Controller. The accountable person took the matter in appeal to the Appellate Tribunal. With regard to the cash gifts, the Tribunal took the view that once the sums were deposited with the firm, they became part and parcel of the capital of the firm and the sons obtained actionable claim in exchange, with the result that the sons had exchanged and converted one form of their property, namely, money, into another form of intangible property, namely, actionable claim, and, when the firm used this fund, it was used as the fund of the firm and not as the fund of the two sons. The Trib .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... bundle of rights gifted in the property. It was pointed out that it makes no difference whether the donee was partner in the firm already or is taken as such at the time of the gift or he became a creditor of the firm by allowing it to make use of the gifted property, and that the rights of a partner in the property and assets of the firm are wholly different from the rights which a person has in the properties which belong to him alone. The ratio of this decision must clearly apply in so far the gift of Rs. 25,000 to each of the two sons is concerned. It is clear from the findings recorded by the Tribunal that the respective amounts were transferred to the current accounts of the donees with the firm. The mere fact that the donor was a pa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X