Estate Duty

Assessment-Deceased withdrawing an amount of Rs. 500 from his Savings Bank Account a few days before his death Presumption that enough cash-in-hand was available-Held, unjust Addition knocked off.

Partition between deceased and sons-Property retained by deceased as absolute property Mortgages obtained subsequently in favour of deceased and sons jointly-Whether pass on death-Gifts to daughters-in-law Credited in business in names of daughter -in-law-Whether deductible as debts-Estate Duty Act, 1953, Ss. 44 & 46(1).

National Savings Certificates in joint names of deceased and wife-Gift to wife under will more than two years prior to death-No steps taken for deleting name of deceased from certificates- Whether encashable value of certificates passes on death-Assignment of insurance policies on life of deceased No proof that deceased did not pay any premiums to keep up policies after assignment-Whether value of insurance policies passes-Debt due-Not proved to have become bad Whether includible in estate passing-Finance Act, 1894 ((I. K.), S. 2(1)(c) -Estate Duty Act, 1953, Ss. 13 & 14(1).

Estate Duty Estate duty-Gift inter vivos-Rights to shares in British company given by person domiciled abroad to persons abroad-Whether property situate out of Great Britain-Whether locality of property determined at date of gift or date of death-Finance Act, 1894 (37 & 58 Vict. c. 30), S. 2(1)(c)-Finance Act, 1949 (12 & 13 Geo. 6, c. 47), S. 28(2).

Property passing on death - Trust - Discretionary trust of income distributable between two beneficiaries Whole of income to be distributed-Whether fund or any part thereof "passed" on death of one beneficiary-Liability to estate duty -"Passing" : scope of statutory definition-Finance Act, 1894 (57 & 58 Viet. c. 30), Ss. 1, 2(1) & 7(7).

Whether property deemed to be part of deceased's (donor) estate- Estate Duty Act, 1953, S. 10.

Estate duty-Re-assessment - Under-valaution Opinion of Central Board of Revenue in appeal regarding correct valuation of securities-Whether "information"- Estate Duty Act, 1953, S. 59 (as amended by 1958-Amendment Act)-[Assn. Controller of Estate Duty v. Nawab Sir Osman Ali Khan Bahadur (1969) 72 I T R 156 reversed].

Share of two ladies paid - Share of third lady remaining in family-Death of karta-Whether entire value of land passes on death-Gift by father to sons-Borrowal by father from firm for making gift-Overdrawings by father-Debit against father on date of death cleared by sons-Debit amount whether passes on death Estate Duty Act, 1953, Ss. 44(a), 46(1) & 46(2).

Gift by deceased to major and minor sons Donor receiving the income as power of attorney agent and guardian-Donor's will providing that donees could recover the income from his estate-Whether the gifted items could be included in the donor's estate

Estate Duty Act, 1953, S. 10.

Estate Duty Estate duty-Cooperative housing society of tenant ownership type-Plot allotted to member-Member putting up building at his own cost-Transfer of shares and possession of plot with super structure to sons-Transfer registered in books of society but not by registered instrument-Death of member-Whether superstructure devolves on estate-Rights of member who transfers the plot Transfer without registered document, effect of.

Settlement by two persons J and M-Entire income from trust property payable to J and M for their lives subject payment of Rs. 825 quarterly to PP and, on death of survivor of settlors, entire income payable to PP-On death of J, estate duty , as charged on half trust estate - Subsequently M increased amount payable to PP quarterly to 35 per cent of the income from trust estate-Death of M-Whether estate duty payable on value of entire trust estate or on 50 per cent. plus 65 per cent. of 50 per cent. of trust estate Estate Duty Act, 1953, Ss. 5 & 12.Held, that (i) as, on the death of J, the Estate Duty Officers held that 50 per cent. of the corpus of the trust fund was brought in by J, the remaining 50 per cent. having been brought in by M, 50 per cent. of the corpus traceable to the share originally brought in by M must be deemed to have passed under section 12 of the Act

Deceased gifting monies to sons-Monies credited in their name in firm in which deceased was partner Interest paid on credits - Whether amounts of gift pass on death of deceased-Interest created-Whether passes state Duty Act, 1953, S. 10-[Mohammad Bhai v. Controller of Estate Duty (1968) 69 I T R 770 dissented from].

Estate Duty Estate Duty - Gift deeds executed by deceased in favour of sons with certain conditions for maintenance, etc., of his wife and daughters-No provision for maintenance of deceased Whether deceased reserved benefit to himself-Whether donees retained possession and enjoyment of properties covered by gift to entire exclusion of deceased-Whether property gifted includible in estate of deceased for liability to estate duty-state Duty Act, 1953, Ss. 2(15), (19), 10 & 12

[Mohammad Bhai v. Controller of Estate Duty (1968) 69 I T R 770 dissented from].Held, (1) the properties in question would be settled properties for the, purpose of section 12 within the meaning of section 2 (12)

Immovable property settled in favour of trust Recital in trust deed that conveyance would be executed-Conveyance not executed subsequently - Whether valid trust Property gifted to wife and other relatives-Income enjoyed by the donor - Whether properties includible in the estate of the deceased-Liabilities on account of accumulated rents in respect of gifted properties-Whether rightly disallowed under S. 46 of the Estate Duty Act-Estate Duty Act, 1953, Ss. 10 & 46.

Provisional assessment - Basis of - Account delivered-Enumeration of properties not owned by deceased Whether can be included in provisional assessment-Estate Ditty Act, 1953, Ss. 53(3) & 57.

Estate Duty -Gift-Exclusion of Donor-Deceased transferring half of his share in a firm to his sons-Sons also becoming partners in firm-Amount transferred whether held by sons to the exclusion of the father-Whether "passes" on death of deceased Estate Duty Act, 1953, S. 10.

Income-tax-Estate duty-Settlement of property by deceased in favour of sons-Firm in which deceased was partner continuing to be tenants-Rent credited to separate accounts of sons-Value of property - Whether includible in estate -of deceased-Assessee directing firm to transfer loan amount to his son equally in accounts of sons in books of firm-Whether amounts to transfer of actionable claim-Whether passes on death-Amount standing in wife's name in books of firm in which deceased was partner-Deceased treated as owner of amount for income-tax and wealth tax purposes Withdrawal of amount and investment in "either or survivor" accounts of wife and son-Whether gift-Amount whether passes on death of assessee-Transfer of Property Act, 1882, S. 130

Estate Duty Act, 1953, S. 10.

Liability to duty-Forest lands situated in States-Whether liable to estate duty-Meaning of "agricultural land"-Burden of proof-Estate Duty Act, 1953, S. 5(1).

Estate Duty Estate duty-Purchase of house property by wife-Husband living in the property-Scope of S. 10 -Estate Duty, Act, 1953, S. 10.

Agricultural land- Proceedings commenced by Controller prior to promulgation of Constitution of Pakistan (1956)-May be carried on, notwithstanding provisions in Constitution of Pakistan (1956) had transferred this subject from Central List to Provincial List-West Pakistan Abolition of Estate Duty (Agricultural Lands) Act, 1958-Not retrospective-West Pakistan Abolition of Estate Duty (Agricultural Lands) Act (XXXV of 1958).

Estate Duty Estate Duty-Appeal-Postponement of collection of duty-Scope of-(Indian) Estate Duty Act, 1953, Ss. 63(6), 67(4) & 70(1). Section 63(6) of the (Indian) Estate Duty Act, 1953, as it stood before amendment required an appellant to pay the undisputed part of the estate duty notwithstanding the pendency of the appeal. There was, under that section, no stay of the collection of the disputed part of the duty where an appeal was filed against the order imposing the duty. Therefore, any collection of the disputed part of the estate duty depended upon the specific orders passed in that regard either by the assessing authority or by the appellate authority.

Estate Duty Estate Duty-Recovery-Notice on persons holding monies for or on behalf of legal representatives of deceased-Scope of liability to pay - Legal representatives not determined - Department whether entitled to apply for representation-Estate Duty Act, 1953, Ss. 2(12), (12-A), 5, 53, 56, 57(2), 58, 62(1)(6) & 73(3), (5)

Indian Income-tax Act, 1922, S. 46(5-A)-Indian Succession Act, 1925, S. 234.

Estate Duty Estate Duty - Value of estate - Deductions - Debts and liabilities-Income-tax and penalty in respect of assessment for years prior to death of deceased-Estate Duty Act, 1953, S. 44.

Estate Duty Estate duty-Property passing on death-Widow's right to reside in property-Sons residing with her-Property whether passes on death of widow-Estate Duty Act (Indian), 1953, Ss. 2(15), 5&7.

Estate Duty Estate Duty-Penalty-Time granted for payment of duty. Penalty imposed on the last day for payment-Invalidity.

Estate Duty Estate duty-Payment of duty in instalments-First instalment when due-Estate Duty Act (Indian); 1953, Ss. 70 (2) & 73 (1) (2).

Estate Duty Estate duty-Gift-Exclusion of donor-Gift of half share of proprietary interest in business of donor-Subsequent partnership between donor and donee-Donor whether entirely excluded-Estate Duty Act, 1953, S. 10.

Property standing in wife's name-Whether passes on death of husband-Estate Duty Act, 1953, S. 6.

Estate Duty Agricultural land-Proceedings commenced by Controller before promulgation of Constitution of Pakistan (1956)-May be carried on, notwithstanding exception made by c, item 26, Federal List, First Schd., Constitution of Pakistan (1956), taking subject of Estate Duty, as regards "agricultural" land, out of purview of Centre and including same in item 74, Provincial List-Question not so much of "procedure" as of continuation p of a law after "repeal"-Liability to pay duty arises by force of "charging" provisions, assessment and collection being subsequent operations unaffected by transference of subject to Provincial List-General Clauses Act (X of 1897), S. 6-[Whiteney v. The Commissioners of Inland Revenue 10 T C (H of L) 88 and McKenna (H. M. Inspector of Taxes) v. Eaton-Turner (1936) 1 K B 1 ref ].

Estate Duty Settlement-Wakf-Reservation of a portion of income for maintenance of settlor during lifetime-Death of settlor-Property deemed to pass-[Estate Duty Act XXXIV of 1953 (India)].

Estate Duty Gift by deceased to son-Deceased and son entering into partnership involving use of gift property in partnership operations

Property held to be included in dutiable estate of deceased

New South Wales Stamp Duties Act, 1920-1956-[Estate Duty Act (X of 1950), S. 9].

[Law of State of New South Wales (Australia)]-Deceased's life interest to be included in assessable assets if property situated in New South Wales wherever deceased may be domiciled, but not if property is personal property situate outside New South Wales even if deceased was domiciled in New South Wales-Charging of property within State's jurisdiction wherever its owner may be not contrary to international law-[Estate Duty Act (X of 1950), S. 20].