JUDGMENT

V. D. TULZAPURKAR, J. :— The question raised for our determination in this appeal is whether on the facts and in the circumstances of the case the amount of Rs. 3 lakhs transferred by the deceased to his three grand-nephews in equal shares was includible in the estate of the deceased that passed on his death? Substantially the answer thereto depends upon whether S. 10 of the Estate Duty Act, 1953 is attracted to the case or not.

2. The facts giving rise to the question may briefly be stated. The deceased, Sri Bankatlal Lahoti was a partner in the firm of M/s Dayaram Surajmal, which carried on business as Bankers. With a view to give Rs. 1 lakh each to his three minor grand-nephews (three grand-sons of his deceased brother) the deceased on 4th Oct. 1952 issued a cheque for Rs. 3 lakhs in favour of the firm; this amount was debited in the account of the deceased in the firm and credited in the accounts of the three minors in equal proportion. The said sum thus transferred to the three nephews continued to stand in their respective accounts in the books of the firm till its dissolution on 4th July 1960, whereafter some assets were allotted to each one of them in lieu of the am