JUDGMENT

Venkataswami, J.-In this appeal by a certificate granted by the High Court of Madras under Section 65 of the Estate Duty Act, 1953 (hereinafter referred to as "the Act"), the vexed question of applicability or otherwise of Section 10 of the Act arises for decision of this Court.

2. One Murugesa Mudaliar, the deceased, passed away on 15.10.1964. He was carrying on a business under the name and style of Newton & Company a proprietory concern. On 20.7.1962, the deceased made two cash gifts of Rs. 40,000/- each to his two daughters, namely, Smt. Rajeswari and Gnaanambigai by debiting his capital account and crediting their accounts in his personal business book. On 20.7.62, both the donees wrote letters to the deceased accepting the gifts and thanking their father. Again on 27.7.62 each donee by separate letters thanking once again for the gifts requested the deceased to retain the same in the business and admit them as partners. Accordingly, a partnership was formed with effect from 1.8.1962 in which the donees and also the donor were the partners. As noticed, the deceased passed away on 15.10.1964. A question arose, inter alia, whether on the facts and in the circumstances o