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Issues:
- Interpretation of s. 64(3) of the E.D. Act, 1953 - Deductibility of liability of Rs. 7,00,000 in estate duty computation Analysis: The judgment pertains to applications filed under s. 64(3) of the E.D. Act, 1953, seeking direction for the Tribunal to state the case and refer questions of law to the High Court. The accountable person claimed a deduction of Rs. 7,00,000 in estate duty concerning a wakf created by the deceased's father, which was not honored, leading to a liability. The Asst. CED disallowed the deduction, citing lack of legal action by the trust and the deceased's perception of the liability as non-existent. The Appellate CED allowed a partial deduction of Rs. 3,50,000, which was further contested by both parties before the Tribunal. The Tribunal ruled in favor of the accountable person, allowing the entire liability deduction, prompting the Department to seek reference to the High Court. The High Court concluded that the existence of the liability and its deductibility in estate duty computation were questions of law, directing the Tribunal to refer the matter for the court's opinion. The applications were allowed, and the Tribunal was instructed to refer the specified question for consideration. Each party was ordered to bear their own costs in this regard.
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