The Tribunal, therefore, held that the settlements made by the deceased were legal, effective and the properties vested in the transferees.
The judgment and order under appeal was passed by a Division Bench of the High Court at Madras see 1993 200 ITR 422 on a reference application under the Estate Duty Act made at the behest of the Revenue.
The following questions were companysidered by the High Court page 425 Whether, on the facts and in the circumstances of the case, the value of the agricultural lands settled by the deceased in favour of his wife, including those lands which the lady settled in favour of her relatives, from out of the lands received by her, companyld be included in the principal value of the estate passing on the death of the deceased ?
Whether, on the facts and in the circumstances of the case, the value of the properties settled by him on his five settles by documents dated December 28, 1956, was includible in the principal value of the estate on his death ?
Possession and enjoyment had been taken by the transferees to the entire exclusion of the deceased, by companytract or otherwise.
The deceased had absolutely numberbenefit or enjoyment left in these transferred properties.
The Tribunal, in an appeal filed by the present appellant as the accountable person in respect of the estate of her late husband, had held, on a companysideration of all the evidence placed on record, that the lands gifted to the appellant by her deceased husband had to be regarded as belonging to her and as having gone out of the hands of the deceased husband.
It was upon this basis that the Tribunal held in favour of the appellant.
Whether, on the facts and in the circumstances of the case, the value of the agricultural lands received by the late P. S. Srinivasa Iyer by way of settlement from the late Shri Ganapathi Subramaniam companyld be included in the principal value of the estate of the deceased ?
The relevant portion thereof reads thus Property taken under any gift, whenever made, shall be deemed to pass on the donors death to the extent that bona fide possession and enjoyment of it was number immediately assumed by the donee and thenceforward retained to the entire exclusion of the donor or of any benefit to him by companytract or otherwise Provided that the property shall number be deemed to pass by reason only that it was number, as from the date of the gift, exclusively retained as aforesaid, if by means of the surrender of the reserved benefit or otherwise, it is subsequently enjoyed to the entire exclusion of the donor or of any benefit to him for at least two years before the death.
