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Issues:
1. Interpretation of provisions of Estate Duty Act, 1953 regarding reassessment and time limitations. 2. Applicability of sections 59, 61, and 73A of the Estate Duty Act in the context of reassessment proceedings. 3. Validity of reassessment made by the Assistant Controller of Estate Duty. Analysis: The judgment by the High Court of MADRAS involved a reference under the Estate Duty Act, 1953, concerning the correctness of reassessment made by the Revenue authorities. The main issue revolved around the interpretation of relevant provisions and the applicability of sections 59, 61, and 73A of the Act in the context of reassessment proceedings. The deceased's accountable person had initially filed the estate accounts in 1975, with the assessment completed in 1976. Subsequently, a revised account was submitted in 1981, leading to a reassessment by the Assistant Controller of Estate Duty. The accountable person claimed exemption for a certain amount due to legal heirs under a group insurance scheme, relying on a court decision. However, the Assistant Controller declined the exemption citing a pending appeal. The Appellate Controller canceled the reassessment, arguing it was beyond the time limit prescribed under section 73A(b) of the Act. The Tribunal upheld this decision, rejecting the Revenue's argument that section 73A applied only to proceedings initiated by Revenue authorities, not voluntary filings by the accountable person. The High Court concurred with the Tribunal's decision, emphasizing the importance of section 73A in limiting the timeframe for reassessment proceedings. It noted that the original assessment was completed in 1976, making the reassessment in 1981 clearly time-barred under section 73A(b). The Court highlighted that the accountable person's filing of revised accounts in 1981 did not extend the reassessment window. Additionally, the Court found no grounds for invoking section 61 for rectification, as no mistakes were apparent, and no notice was issued under section 61. Ultimately, the High Court upheld the Tribunal's decision, ruling that the reassessment made in 1981 was invalid due to being time-barred under section 73A(b). The Court emphasized the lack of notices under sections 59 and 61 and concluded that the proceedings initiated after the expiration of three years from the original assessment were impermissible. The judgment favored the accountable person, answering the legal question against the Revenue. No costs were awarded in the case.
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