CONTROLLER OF ESTATE DUTY, GUJARAT vs HUSSAINBHAI MOHMEDBHAI BADRI

The Supreme Court held that under Section 5(1) of the Estate Duty Act, only the beneficial interest of the deceased in the trust estate 'passed' on her death, not the entire trust property. The Court clarified that a change in beneficial interest, rather than legal title, is the key factor in determining what constitutes property passing on death. The Court upheld the Tribunal's decision that only 1/3rd of the trust estate should be included in the estate valuation, thus ruling in favor of the respondent.