CONTROLLER OF ESTATE DUTY, WEST BENGAL versus USHA KUMAR & ORS.

CONTROLLER OF ESTATE DUTY, WEST BENGAL versus USHA KUMAR & ORS.

Only one-half of the trust properties corresponding to one-half of the total income earmarked for religious purposes did not pass on death. The remaining one-half, retained by the family and hit by the rule against perpetuities, is deemed to pass on death and is liable to estate duty under section 5 of the Estate Duty Act, 1953.

Parties
Appellant: Controller of Estate Duty, West Bengal; Respondents: Usha Kumar & Ors.
Jurisdiction
India
Judgment Date
20 November 1979
Procedural Posture
Civil Appeal / Appeal From Calcutta High Court Judgment Dated 21 5 1971, Matter No. 95/65
Outcome
Appeal allowed in part.
Legal Topics
Rule Against Perpetuities, Religious Endowments, Hindu Law, Partial Dedication
Estate Duty Trusts and Succession Rule Against Perpetuities Religious Endowments Hindu Law Partial Dedication

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Parties

Controller of Estate Duty, West Bengal

Appellant

Usha Kumar & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Calcutta High Court Judgment Dated 21 5 1971, Matter No. 95/65

Legal Issues

  1. 1 Whether all or any part of the properties subject to the trust pass on the death of the deceased for purposes of levy of estate duty under the Estate Duty Act, 1953

Ratio Decidendi

Only one-half of the trust properties corresponding to one-half of the total income earmarked for religious purposes did not pass on death. The remaining one-half, retained by the family and hit by the rule against perpetuities, is deemed to pass on death and is liable to estate duty under section 5 of the Estate Duty Act, 1953.

Court Disposition

Appeal allowed in part.

Orders

  • Only one-half of the properties subject to the trust passed on the death of the deceased under section 5 of the Act.
  • Remaining one-half did not pass and is not subject to estate duty.