Judgment

FAZAL ALI, J. - This appeal by certificate is directed against Full Bench judgment of the Madras High Court dated December 5, 1969 - Alladi Kuppuswami v. Controller of Estate Duty. Madras, 76 ITR 500 : (AIR 1970 Mad 366) (FB) by which the reference made to the High Court by the Central Board of Revenue was answered in favour of the accountable person and against the Revenue. The case involves an interesting and important question of law in respect of ambit and scope of Sections 7 (1) & (2) as also 39 of the Estate Duty Act, 1953 - hereinafter referred to as the Act. In order to decide the question of law arising in the appeal, it may be necessary to set out briefly the facts of the case. Sri Alladi Krishnaswami Iyer died some time before the passing of the Estate Duty Act, 1953, but during his lifetime he had settled certain properties absolutely on his wife Smt. Alladi Venkalakshmamma - to be referred in short as Smt. Alladi - and he had also declared certain other properties to form part of the joint family properties. Sri Alladi Krishnaswami Iyer - hereafter to be referred to as "Shri Alladi" was a member of the Hindu coparcenary consisting of himself, his wife and three