MAHENDRA RAMBHAI PATEL vs CONTROLLER OF ESTATE DUTY, GUJARAT

The Supreme Court held that the deceased's interest in the shares under the deed of trust constituted 'property' as defined under Section 2(15) of the Estate Duty Act, 1953. The Court ruled that despite the shares not being deliverable until the beneficiary attained the age of 25, the deceased was beneficially entitled to the income and thus his interest passed to the appellant upon his death, making the appellant liable for estate duty under Section 5. The Court clarified that Section 23 was not applicable as the interest did not fail before becoming an interest in possession.