Judgment

HEGDE, J.:- The question of law referred to the High Court for its opinion was "Whether on the facts and in the circumstances of the case, the sum of Rs. 1,29,924 was liable to estate duty as property deemed to pass on the death of the deceased under Section 10 of the Estate Duty Act, 1953?". The High Court answered that question in the negative and in favour of the assessee. Aggrieved by that decision the Department has come up in appeal to this court. The facts of the case as can be gathered from the statement of case submitted by the Tribunal are as follows:

"The deceased Sri N. S. Ramaswami Iyer was a partner in the firm of Messrs. Ennessor and Company. The other partners of the firm consisted of the three sons and the daughter of the deceased. The firm was engaged in money-lending and financing business. The firm was registered under Section 26-A of the Income-tax Act, 1922.

At the end of the accounting year 1952-53, the current account of the deceased showed a credit balance of Rs. 78,098-6-5. On 31-3-1953, the deceased transferred by adjustment entries a sum of Rs. 52,042-7-3 to the accounts of his daughter and three sons. The balance in the account of the deceased was