CONTROLLER OF ESTATE DUTY, A.P., HYDERABAD vs SMT. GODAVARI BAI

The Supreme Court held that under Section 10 of the Estate Duty Act, 1953, the Rs. 3,00,000 transferred by the deceased to his grand nephews was includible in his estate as it did not constitute a valid gift under Section 130 of the Transfer of Property Act. The Court determined that the cheque issued did not authorize the firm to transfer the amount to the minors without a separate written instrument. The High Court's decision to set aside the Tribunal's order was reversed, affirming that the transfer was not effective and the amount remained part of the deceased's estate upon his death.