| Case ID |
2656a9f0-4486-4752-90d3-0873ecefd5c3 |
| Body |
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| Case Number |
ESTATE DUTY REFERENCE No. 618 OF 1965 |
| Decision Date |
Dec 23, 1971 |
| Hearing Date |
|
| Decision |
The court held that the shares held in the name of the deceased's wife were actually owned by the deceased, as he had the real title to them. The law imposes an obligation in the nature of trust on the benamidar, indicating that the nominal title held by the wife did not affect the deceased's ownership. The decision clarified that the value of these shares should be included in the estate for tax purposes under the Estate Duty Act. This case reinforces the principle that properties held benami can be taxed as part of the deceased's estate, ensuring that the estate duty law is applied correctly to capture the true ownership of assets. |
| Summary |
This case revolves around the interpretation of property ownership under the Estate Duty Act, specifically regarding shares held in the name of the deceased's wife. The court determined that the deceased had the real title to the shares, despite them being registered in his wife's name, due to evidence showing that the funds for their purchase originated from the deceased. The decision underscores the legal implications of benami transactions and the responsibilities of the benamidar, establishing that for estate duty purposes, the value of the shares must be included in the deceased's estate. This case provides clarity on the application of sections 5 and 2(16) of the Estate Duty Act, emphasizing that the actual ownership and control over the property dictate its tax liability rather than mere nominal ownership. Additionally, it highlights the importance of evidentiary support in claims regarding property ownership and income attribution, thereby impacting future estate duty assessments. Keywords include Estate Duty Act, benami transactions, property passing on death, estate tax implications, and ownership rights. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
S.N. Dwivedi,
C.S.P. Singh,
Gopinath
|
| Lawyers |
R.K. Gulati,
Deokinandan,
Dr. R.R. Misra
|
| Petitioners |
O.S. Chawla
|
| Respondents |
Assistant Controller of Estate Duty
|
| Citations |
1973 SLD 382,
(1973) 90 ITR 68
|
| Other Citations |
Smt. Shantabai Jadav v. CED [1964] 51 ITR (ED) 1 (AP),
Smt. Denabai Boman Shah v. CED [1967] 66 ITR 385 (AP),
Alok Mitra v. CED [1971] 82 ITR 430 (All),
Abdul Hye v. Mir Mahommed Mazaffar Hossein [1884] ILR 10 Cal. 616 (PC),
Controller of Estate Duty v. Smt Usha Devi [1970] 76 ITR 347 (MP),
Gopeekrist Gosain v. Gungapersaud Gosain [1854] 6 MIA 53 (PC),
Musadee Mahomed Cazun Sherazee v. Meerza ally Mahomed Shoostry [1854] 6 MIA 27 (PC),
State Bank of India v. Controller of Estate Duty [1968] 69 ITR 270 (Punj.)
|
| Laws Involved |
Estate Duty Act, 1953,
Income-tax Act
|
| Sections |
5,
2(16),
16(3)
|