On August 16, 1953 Puranabai executed a deed of gift in favour of Suryakant in respect of the three receipts companytaining the following recitals Out of natural love and affection I have towards the said Suryakant son of Satyanarayana I hand over to the said Satyanarayana as the father and natural guardian of the said Suryakant Fixed Deposit Receipts total for Rs.
80,931/10/ the Assistant Controller observed that even though the earlier receipt was discharged on August 25, 1955 i.e. within two years of the death of Purnabai and the amount was invested in the name of Suryakant, by virtue of the provisions of the Estate Duty Act the amount held in the name of Suryakant alone, was for assessment of estate duty liable.
Counsel placed strong reliance upon the letters dated July 22, 1953, August 17, 1953 and the terms of the deed of gift dated August 16, 1953.
6,26,724/ .
S0,931/10/ was encashed and out of the amount of Rs.
On August 17, 1953 Purnabai addressed a letter to the Manager of the Bank enclosing a companyy of the declaration of gift and intimated that her grand son Suryakant was the sole owner of the amount of the two fixed deposit receipts and till Suryakant S. Mody attained the age of majority the receipts should remain in the joint names as they then stood.
The balance was also deposited alone with a firm in Bombay also.
of Purnabai.
80,931 10/ was previously obtained in the joint names of Purnabai and Suryakant on July 4, 1953.
45,793/4/ , F.D.R.N. 221/ 8292 dated 3 8 53 for Rs.
Appeal from the judgment and order dated April 11, 1966 of the Rajasthan High Court in D.B. Civil Reference Estate Duty Act No.
in the name of Suryakant alone.
The Bank had numberice of the gift deed.
natural guardian of the said Suryakant accepted the said gift of Rs.
The deposit receipts were renewed from time to time after August 16, 1953 in the joint names of Purnabai and Suryakant till August 25, 1955 under their terms the receipts companyld be encashed by either or the survivor.
It appears that a receipt for Rs.
to be included in the estate.
With certificate granted by the High Court this appeal has been preferred.
Regarding the third receipt for Rs.
6,85,193/ was companyrectly included in the estate of the deceased as property deemed to pass on her death under section 10 of the Estate Duty Act, 1953 ?
D.R.N. 222/ 8293 dated 3 8 53 for Rs.
86,732/ realized, Rs.
and that the renewed fixed deposit receipts be sent to Satyanarayana at Bombay.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
80,931/10/ of Bank of Bikaner Ltd., Jhunjhunu in the name of Purnabai Sagarmal and Suryakant Satyanarayana Mody payable to either or survivor as and by way of gift to the said Suryakant on the 15th day of August 1953 and that the said Satyanarayana for and on behalf of and as the.
C. Chagla, B.D. Sharma and M D. Bhargava, for the appellant.
The Board held that at all material times during the currency of the fixed deposit Purnabai had the right to receive the money from the Bank by giving discharge for the same and that whenever the Fixed Deposit Receipts matured during the lifetime of Purnabai, the receipts were, in fact, discharged by her alone and in the circumstances it companyld number be said that the property was held by the donee to the entire exclusion of the donor.
The Board of Revenue referred the following question the High Court of Rajasthan for opinion Whether on the facts and in the circumstances of the case the sum of Rs.
is clear that Purnabai desired to make a gift of the amount represented by the previous deposit receipts and did in fact execute a deed of gift.
16 of 1963.
Jagdish Swarup, Solicitor General, T.A. Ramachandran, N. Sachthey and B.D. Sharma, for the respondent.
In appeal the Central Board of Revenue companyfirmed the order.
5,00,000/ of the Bank of Bikaner Ltd., Jaipur and F.D.R. No.
438 of 1967.
The Assistant Controller of Estates duty in procedings for assessment of estate duty held inter alia that possession and enjoyment of the gifted property was number assumed by the donee to the entire exclusion of the donor, and on that account the amount of the two receipts and interest thereon formed part of the estate of Purnabai and was, liable to estate duty.
The Judgment of the Court was delivered by Shah, Ag.
5,000/ were invested in the name of Suryakant in National Savings Certificates.
6,26,724 14 0 with the State Bank of Bikaner.
The High Court of Rajasthan answered the question in the affirmative.
Pursuant to this letter two fresh receipts were issued on August 3, 1953 for Rs.
The other two receipts were renewed in the joint names of Purnabai and Suryakant.
5,00,000 and Rs.
By her letter dated July 22, 1952 Purnabai informed the Bank that she intended to make a gift of the amounts of two out of the three receipts to Suryakant son of her adopted son Satyanarayana, and requested that the receipts be renewed for three months in the joint names of Purnabai Sagarmal Mody and or Surya Kant S. Mody payable to either or survivor.
45,793/4/ .
11446 dated 4 7 53 for Rs.
gifted by me as aforesaid.
After the death of Purnabai on February 15, 1956, the two receipts were encashed by Suryakant.
6,26,724/14/ .
On August, 25 1955 the receipt for Rs.
The gift deed companytained a companyfirmation by Satyanarayana that he had accepted the gift for and on behalf of and as natural guardian of Suryakant to the intent and effect that the said Suryakant shall be the absolute owner of the sum gifted.
