9911796707
TMI Blog1996 (9) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... by the donees, as noticed above, we are of the view that there is nothing to suggest that parting with the enjoyment or benefit by the donee, or permitting the donor to share them out of the bundle of rights gifted in the property is referable to the gift. We agree with the contention of learned counsel for the appellant that the facts are more or less identical with the facts in Viswanathan's case [1976 (9) TMI 43 - SUPREME Court] and the ratio laid down therein which has been consistently applied by this court subsequently will apply to the facts of this case. Thus appeal allowed and answer the question referred to the High Court in the affirmative in favour of the accountable persons and against the Revenue. - - - - - Dated:- 18-9-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the donees in his personal business book could not be included in the principal value of the estate of the deceased under section 10 of the Estate Duty Act. The Assistant Controller of Estate Duty overruling the objection of the accountable persons concluded that since the gifted amounts were not taken possession of and enjoyed by the donees to the entire exclusion of the donor, the gifted amounts were liable to be included in the principal value of the estate of the deceased under section 10 of the Act. On appeal, the Appellate Controller confirmed the assessment. The accountable persons appealed to the Income-tax Appellate Tribunal (" the Tribunal ", for short) and the Tribunal found that the gifts in question did not fall within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt, on behalf of the accountable persons, a decision of the court in CED v. R. V. Viswanathan [1976] 105 ITR 653 ; [1977] 1 SCC 90 was relied upon. However, the High Court distinguished that decision and ruled that on the facts of the case, section 10 of the Act is attracted and consequently answered the question referred to it in favour of the Revenue and against the assessee. Later, at the instance of the accountable persons, the High Court granted a certificate of fitness for appeal to this court in view of the later decision of this court in CED v. Kamlavati [1979] 120 ITR 456. Before us also learned counsel appearing for the appellant placing reliance on the decisions of this court in Viswanathan's case [1976] 105 ITR 653 and Kamla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conflicting views of the High Courts and to a certain extent, misunderstanding of the decisions of this court was prevailing. That was the reason for this court in Kamlavati's case [1979] 120 ITR 456 to observe as follows : " To avoid the conflict in the application of the ratio of the various Supreme Court cases as seems to have been done by some of the High Courts, we would like to clarify and elucidate some of the aspects and facets of the matter a bit further. When a property is gifted by a donor the possession and enjoyment of which is allowed to a partnership firm in which the donor is a partner, then the mere fact of the donor sharing the enjoyment or the benefit in the property is not sufficient for the application of section 10 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the gift was made and accepted, it was unconditional. A week later the donees requested that a partnership be formed and the amounts gifted be retained and utilised as share capital of the donees in the partnership firm to be formed. In the light of the letters written by the donees, as noticed above, we are of the view that there is nothing to suggest that parting with the enjoyment or benefit by the donee, or permitting the donor to share them out of the bundle of rights gifted in the property is referable to the gift. We agree with the contention of learned counsel for the appellant that the facts are more or less identical with the facts in Viswanathan's case [1976] 105 ITR 653 (SC) and the ratio laid down therein which has been c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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