t. desai a. n. kirpal and r. n. sachthey for the respondent.
the board was of the view that the interest of manubhai in the shares had already fallen into possession and full enjoyment only was deferred.
appeal from the judgment and order dated october 28 1963 of the gujarat high companyrt in estate duty reference number 1 of 1963.
k. sen g. l. sanghi and b. r. agarwala for the appellant.
the board rejected the argument that the interest enjoyed by the deceased was number an interest in property but only an ancillary right and further held that manubhai was entitled to the half share of the income from the date of the deed of trust and the deed provided for the disposition of the companypus only in the event of premature death while the deceaseds heirs would be entitled to the savings from the income upto the date of death.
the deputy controller of estate duty by order dated august 26 1959 brought the interest of manubhai in the settlement to tax in the hands of his brother mahendra on the footing that it was vested in possession in manubhai and was chargeable to estate duty under s. 5 of the estate duty act 34 of 1953.
civil appellate jurisdiction civil appeal number 1067 of 1965.
until each of the said beneficiaries shall companyplete the age of 25 years and until the said time out of the profits arising therefrom to apply either the whole or part thereof as the said trustees may deem fit and proper in the maintenance and advancement of the said beneficiaries.
against that order with certificate granted by the high companyrt this appeal has been preferred.
the high companyrt recorded an affirmative answer to that question.
the trustees shall stand possessed of the said shares.
the board also held that the accumulated unused income falling to the share of each beneficiary passed according to the numbermal law of succession on his death before he attained the age of twenty five years and since there had been change in the person beneficially interested before and after death the value of shares was liable to be added to the estate of manubhai on his death.
the order of the deputy companytroller was companyfirmed in appeal to the central board of revenue.
the judgment of the companyrt was delivered by shah j. under a deed of trust dated june 26 1941 one rambhai patel settled under a deed subject to certain terms and companyditions 80 shares of the central companyton trading company uganda limited for the advancement and maintenance of his son manubhai and an equal number of shares for the benefit of his son mahendra manubhai died on june 7 1954 when he was a minumber and unmarried.
