9911796707
|
Home
Issues:
1. Inclusion of the value of the share of lineal descendants in the estate for rate purposes. 2. Inclusion of the deceased's share in the value of the goodwill of the firm in the principal value of the estate. Detailed Analysis: Issue 1: The first issue pertains to whether the value of the share of lineal descendants of the deceased in the joint family property should be included in the estate for rate purposes. The Appellate Tribunal had held that despite section 34(1)(c) of the Estate Duty Act, the value of the share of lineal descendants should not be included. The accountable person relied on a Madras High Court decision and argued against the enforcement of section 34. The High Court noted that the Tribunal is not bound by the decision of the Madras High Court but found it persuasive. The High Court referenced various cases to emphasize the importance of following decisions of High Courts. Ultimately, the High Court decided not to follow the Madras High Court decision and upheld the inclusion of the value of the share of lineal descendants in the estate. Issue 2: The second issue revolves around whether the share of the deceased in the value of the goodwill of the firm should be included in the principal value of the estate. The Appellate Tribunal had deleted the amount related to the goodwill of the firm from the estate. The High Court agreed with the reasoning and conclusion of the Madras High Court in a similar case and held that the goodwill of the firm should not be included in the principal value of the estate. Therefore, the High Court answered the second question in favor of the assessee and against the Revenue. In conclusion, the High Court ruled in favor of the Revenue regarding the inclusion of the value of the share of lineal descendants in the estate but sided with the assessee on the issue of including the deceased's share in the value of the goodwill of the firm in the principal value of the estate. The judgment provides a detailed analysis of the legal precedents and considerations involved in reaching these decisions.
|
