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Issues: Estate Duty - Inclusion of value of jewellery in estate under Estate Duty Act, 1953.
Analysis: The case involved a dispute regarding the inclusion of the value of jewellery in the estate of a deceased individual for the purpose of Estate Duty assessment. The deceased, a taxpayer, had consistently shown the value of jewellery in her wealth-tax returns as Rs. 30,000 until her death in 1964. However, the accountable person, her son, filed an estate duty return showing the jewellery's value as "nil" after her demise. The Asst. Controller observed discrepancies in the valuation of jewellery in the deceased's wealth-tax returns leading up to her death, with values varying from Rs. 30,000 to Rs. 8,000 and eventually "nil." Due to the lack of evidence indicating disposal of the jewellery, the Asst. Controller included the initial value of Rs. 30,000 in the estate calculation. In the appeal process, the Appellate Controller accepted the accountable person's submission, noting that the deceased had purchased Gold Bonds against the jewellery, which had been separately assessed. Citing a precedent from the Mysore High Court, the Appellate Controller directed the exclusion of the Rs. 30,000 valuation from the deceased's estate. However, the Income-tax Appellate Tribunal, upon departmental appeal and subsequent rectification, determined that Rs. 8,000 representing the value of jewellery should be included in the deceased's assets. The Tribunal relied on the deceased's last wealth-tax and income-tax returns, which indicated possession of jewellery worth Rs. 8,000 and lacked evidence of disposal prior to her death. The accountable person's counsel argued that since the deceased had purchased Gold Bonds, the entire jewellery value should be excluded from the estate calculation. However, the Tribunal found that the deceased's jewellery worth Rs. 8,000 had not been proven to be disposed of during her lifetime. The Tribunal also disregarded the accountable person's claim based on a subsequent wealth-tax return showing the jewellery value as "nil," as it did not preclude the Estate Duty Officer from independently assessing the estate. Ultimately, the Tribunal upheld the inclusion of Rs. 8,000 as the value of jewellery in the deceased's estate for Estate Duty assessment, ruling in favor of the department. In conclusion, the court affirmed the Tribunal's decision to include Rs. 8,000 representing the jewellery value in the deceased's estate for Estate Duty assessment. The accountable person was ordered to pay costs amounting to Rs. 200.
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