9911796707
TMI Blog1979 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Halsoor ' A ' and ' B ' estates is includible in the principal value of the estate passing on the death of the deceased under section 10 of the Estate Duty Act, 1953 ? (2) Whether, on the facts and in the circumstances of the case, the value of the standing crop of the Halsoor estate was includible in the principal value of the estate ? " In T.R.C. No. 80 of 1977, the following question is referred pursuant to the order made by this court in C.P. No. 39 of 1976 : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that a sum of Rs. 32,000 being the price of Chikkannakonda estate purchased on April 4, 1962, was includible under section 9 of the Estate Duty Act? " The fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on April 4, 1962. Thereafter, Habibullah died on January 9, 1963. The accountable person filed returns under the provisions of the E.D. Act before the Asst. CED, Mangalore. In the returns so filed the accountable person claimed that the properties settled, namely, the Halsoor estate as also the four items of the properties referred to above, which were purchased by investing the income from the Halsoor estate belonged to the minors and, therefore, cannot be considered as the assets passing on the death of Habibullah. In order to show, that the purchase of the four items of the properties referred to above wore out of the income from the Halsoor ' A' and ' B ' estates, the accountable person furnished the income from those properties for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to the date of his death, has to be treated as an asset passing on the death of the said Habibullah. Having reached the aforesaid conclusion, the Asst. Controller also held that the properties settled did not take effect immediately and, therefore, it was hit by the provisions of s. 12 of the Act. According to s. 12 of the Act, property passing under any settlement made by the deceased by a deed or any other instrument not taking effect as a will whereby the interest in such a 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 exercise of any power, to restore to himself or to reclaim the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the accountable person that the four properties purchased during the lifetime of Habibullah in favour of the minors was out of the income derived from the Halsoor estate, the finding recorded by all the three authorities concurrently was that income derived from Halsoor estate for the 8 years preceding such purchase fell short only by a sum of Rs. 32,000 and, therefore, while it was possible to accept the plea of the accountable person that three items of properties belonged to the minors even before the date of death of Habibullah, the 4th property purchased on April 4, 1962, for Rs. 32,000, namely, Chikkannakonda estate, must be deemed to be a purchase made out of the personal funds of Habibullah and, therefore, should be treated as gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ller on the sentence in the settlement which was to the effect that Habibullah would look after and manage the properties as long as he lived is not correct. The said sentence could not be read torn out of the context. On a reading of the entire settlement deed executed by Habibullah who settled the properties in favour of his minor sons, it is clear that Habibullah being aged, in his anxiety to protect the interest of the minors made the settlement.The settlement was to come into effect immediately and the full ownership in the schedule-properties was also to be vested in the minors. As his two sons were minors, the settlor stated in the settlement, that he would look after the management of the properties so long he was alive which necess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears for which the figures were furnished in view of the determination made by Agrl. I.T. proceedings. According to the figures furnished, the income for the four years commencing from March 31, 1959, was about Rupees one and half lakhs. When this basis was furnished by the accountable person, the Asst. Controller computed the income of the same properties for the earlier four years at Rs. 80,000 only. No reason is given or special circumstance relied on by him to show as to why the income for the preceding four years should be only Rs. 80,000 as against Rs. 1,50,000 for the subsequent four years. Even if the income for the four years prior to March 31, 1959, is taken approximately at Rs. 1,12,000 that would have been sufficient to cover al ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
