Judgment

JAGANMOHAN REDDY, J. :- This appeal is by certificate against the judgment of the Tamil Nadu High Court, which has answered the following two questions referred to it, in favour of the assessee and against the Revenue.

(1) Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that the house property in Avanashi Road, Coimbatore, is not liable to estate duty as property deemed to pass on the death of the deceased under Section 10 of the Estate Duty Act, 1953 ?

(2) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the sum of Rs. 1 lakh gifted by the deceased to his sons in 1953 is not liable to estate duty as property deemed to pass on the death of the deceased under Section 10 of the Estate Duty Act, 1953 ?

These questions arose on the facts set out in the statement of the case which are: one Ramaiah Gounder was a partner in the firm called M. Desai Gounder & Co., Coimbatore. He owned property which the firm was occupying as tenant-at-will. In August 1953, he executed a deed of settlement under which he transferred the property leased out to the firm to his two sons Lingiah and K