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Issues:
1. Whether the provision for gratuity should be allowed as a liability in calculating the deceased's share of interest in partnership firms. 2. Whether the estate duty payable is deductible in computing the value of the deceased's estate. Analysis: 1. The case involved two Tax Cases filed by the Department and the accountable person regarding the allowance of a provision for gratuity as a liability in determining the deceased's share of interest in two partnership firms. The Assistant Controller disallowed the gratuity liability, but the Appellate Controller allowed it based on a previous Tribunal decision. The Tribunal upheld the allowance, stating it was a statutory liability certain but not immediately payable. The accountable person argued that the gratuity liability should be deductible. The High Court agreed, emphasizing the absence of a challenge to the actuarial basis of the liability calculation and citing precedent supporting the deduction of gratuity based on actuarial valuation. 2. The second issue pertained to whether the estate duty payable is deductible in computing the deceased's estate value. The accountable person claimed the estate duty as a liability, which was disallowed. The High Court referred to a Supreme Court decision stating that estate duty falling on property passing at death is not deductible in computing the estate value. Therefore, the High Court answered this question against the accountable person, affirming that the estate duty is not deductible in determining the net principal value of the estate under the Estate Duty Act, 1953. The court also highlighted that the accountable person did not challenge the scientific or actuarial method used in calculating the gratuity liability, leading to the affirmation of the Tribunal's decision in allowing the deduction.
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