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Issues:
- Imposition of penalty for non-payment of estate duty in monthly instalments - Appeal against penalty by the accountable person - Interpretation of relevant sections of the Estate Duty Act, Indian Income-tax Act, and General Clauses Act - Competency of the appeal filed by the accountable person without full payment of the assessed duty - Consideration of orders by the Income-tax Appellate Tribunal for payment of duty in instalments - Determination of whether estate duty was due and unpaid at the time of the appeal Imposition of Penalty: The estate of Kamala Devi Fatehpuria was assessed to estate duty, and the accountable person was allowed to pay the duty in monthly instalments. However, the accountable person failed to make the payments as per the order, leading to the cancellation of the instalment scheme and imposition of a penalty by the Assistant Controller. Appeal Against Penalty: The accountable person filed an appeal against the penalty, contending difficulties in making payments due to various reasons. The Appellate Controller accepted the contentions, reduced the penalty to a token sum, and remitted the balance penalty. Interpretation of Relevant Sections: The Tribunal considered the appeal by the accountable person against the penalty imposed under section 46(1) of the Indian Income-tax Act, 1922, read with section 73(5) of the Estate Duty Act, 1953. The Tribunal held that the appeal was competent based on the provisions of the Income-tax Act, 1961, and upheld the order of the Appellate Controller. Competency of Appeal: The estate duty authorities contended that the appeal was not maintainable as the duty had not been fully paid by the accountable person at the relevant time. The Tribunal disagreed, stating that the appeal was competent under the applicable provisions. Consideration of Tribunal Orders: The accountable person relied on orders by the Income-tax Appellate Tribunal directing payment of duty in instalments, arguing that the duty was not fully due and payable at the time of the appeal. These orders were not initially brought to the Tribunal's attention, leading to further analysis of the situation. Determination of Due Estate Duty: The High Court directed the Tribunal to consider whether any estate duty was due and unpaid at the time of the appeal, taking into account the orders for instalment payments. The Tribunal was instructed to determine this aspect and hear the parties if necessary. In conclusion, the High Court clarified the interpretation of relevant laws, highlighted the importance of due payment of estate duty for appeal competency, and instructed the Tribunal to consider the specific circumstances regarding the payment of duty before making a final decision.
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