CONTROLLER OF ESTATE DUTY, KERALA vs M/S. R.V. VISHWANATHAN & ORS.

The Supreme Court held that under Section 10 of the Estate Duty Act, 1953, property gifted by a deceased donor is not deemed part of the estate if the donee has taken possession and enjoyment to the exclusion of the donor. The Court clarified that both conditions must be satisfied: the donee must have exclusive possession and enjoyment, and the donor must not receive any benefit from the property. The appeal by the Revenue was dismissed, affirming the Tribunal's decision that the amounts transferred were not absolute gifts but shares in the business, thus not includable in the estate of the deceased.