CONTROLLER OF ESTATE DUTY, MADRAS vs PARVATHI AMMAL

The Supreme Court ruled that under Section 10 of the Estate Duty Act, 1953, a gift of immovable property is subject to estate duty unless the donee assumes immediate, exclusive, and bona fide possession without any beneficial interest reserved to the donor. The court clarified that both conditions must be satisfied independently for the property to be exempt from duty. In this case, the deceased's continued possession and enjoyment of the property indicated that he was not entirely excluded, thus making the property liable for estate duty upon his death.