SAROJINI AMMAL vs THE CONTROLLER OF ESTATE DUTY, MADRAS

The Supreme Court addressed the applicability of Section 10 of the Estate Duty Act, 1953, in the context of gifts made by the deceased to his daughters. The Court held that the gifts, although recorded in the business accounts, did not constitute a complete transfer as the donees did not take possession to the exclusion of the donor. Consequently, the amounts were liable to be included in the estate's principal value under Section 10. The Tribunal's decision to exclude the gifts from estate duty was overturned, affirming the Assistant Controller's assessment.