| Case ID |
05542f28-553d-49ce-9839-7936d8bb2347 |
| Body |
View case body. Login to View |
| Case Number |
Estate Duty Ref. No. 1 of 1958 |
| Decision Date |
Nov 03, 1958 |
| Hearing Date |
|
| Decision |
The court held that the entire wakf properties, including a sum of Rs. 1 lakh, are chargeable to estate duty under section 5 read with sections 3(3) and 12 of the Estate Duty Act. It was determined that section 12 applies to the wakf in this case as it is a settlement and not merely a gift. The court emphasized that the entire property of the settlor deemed to pass on death, regardless of the reserved interest, must be considered for estate duty assessment. The ruling clarified that the term 'passing' in the Estate Duty Act does not imply a technical definition but rather a comparison of beneficial interests before and after death. It concluded that the Revenue must establish its claims with clear statutory language, affirming that the legislation imposes a duty on all properties passing on death. |
| Summary |
This case revolves around the application of estate duty on wakf properties created by Aishabai Muhammad Ibrahim. The Bombay High Court examined whether the entire wakf property, including a specific sum reserved for maintenance, was subject to estate duty. The ruling clarified the interpretation of 'passing' in relation to estate duty, emphasizing that the entire value of properties subject to a wakf is chargeable to duty upon the settlor's death. This decision is significant for understanding how settlements are treated under the Estate Duty Act, particularly in the context of Muslim law where wakfs are involved. The court's reasoning highlights the importance of legislative clarity in matters of taxation, especially concerning properties that are deemed to pass upon death. This case is crucial for legal practitioners dealing with estate planning and tax implications of wakfs, providing insights into the intersection of Islamic law and Indian tax legislation. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
S. T. DESAI,
K. T. DESAI
|
| Lawyers |
|
| Petitioners |
Khatizabai Muhammad Ibrahim
|
| Respondents |
Controller of Estate Duty, Bombay
|
| Citations |
1960 SLD 225,
1960 PTD 191
|
| Other Citations |
1953 SCR 773,
1899 A C 198,
1914 A C 765,
1936 A C 569,
1945 Ch. 285,
1951 S. L. T. 57
|
| Laws Involved |
Estate Duty Act, 1953,
Customs and Inland Revenue Act, 1889,
Customs and Inland Revenue Act, 1881
|
| Sections |
64(1),
12,
63,
5,
11,
38(2)(c)
|