DIPTI NARAYAN SRIMANI vs CONTROLLER OF ESTATE DUTY, WEST BENGAL

The Supreme Court interpreted Section 12(1) of the Estate Duty Act, 1953, clarifying that the requirements of this section do not necessitate the incidents of 'settled property' as defined in Section 2(19). The Court held that a trust deed can satisfy Section 12(1) if it involves a settlement as per the second part of Section 2(19) and includes a reservation of interest by the settlor. The Court dismissed the appeal of the accountable person while allowing the Revenue's appeal, confirming that the properties in the deed dated 21.9.1953 were dutiable under Section 12(1), while those in the deed dated 4.10.1959 were not settled properties and thus not subject to duty under this section.