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Issues Involved:
1. Deduction towards marriage and maintenance expenses of the unmarried daughter of the deceased. 2. Basis for fixing the amount for deduction towards marriage expenses of the unmarried daughter. 3. Deduction towards maintenance expenses of the wife of the deceased. 4. Deductibility of estate duty payable while computing the net principal value of the estate. Summary: Issue 1: Deduction towards marriage and maintenance expenses of the unmarried daughter of the deceased The Appellate Tribunal allowed deductions for the marriage and maintenance expenses of the unmarried daughter from the estate passing on the deceased's death. The Tribunal reasoned that the joint family estate is liable for these expenses under Hindu law. The Tribunal fixed Rs. 1,00,000 for marriage expenses and Rs. 10,000 per year for maintenance, directing the Assistant Controller to verify and allow these sums accordingly. The High Court agreed with the Tribunal that no question of law arose from this decision, as it was based on factual determinations. Issue 2: Basis for fixing the amount for deduction towards marriage expenses of the unmarried daughter The Tribunal's decision to fix Rs. 1,00,000 for marriage expenses was based on the high value of the estate and the status of the family. The High Court upheld this as a factual determination, not a question of law, and dismissed the revenue's request to refer this issue to the court. Issue 3: Deduction towards maintenance expenses of the wife of the deceased The Tribunal erred in allowing deductions for the maintenance expenses of the wife from the estate. The High Court clarified that the deceased was not the karta of a joint Hindu family but the sole owner of the property. Under section 44 of the Estate Duty Act, the claim for maintenance is neither a debt nor an encumbrance. The wife's right to maintenance during the husband's lifetime does not create a charge on the property. After the husband's death, the wife is entitled to a share of the estate under section 8 of the Hindu Succession Act, and cannot claim maintenance in addition to this share. Therefore, the Tribunal's decision to allow this deduction was incorrect. Issue 4: Deductibility of estate duty payable while computing the net principal value of the estate The High Court followed a binding precedent (Controller of Estate Duty v. Estate of Late Omprakash Bajaj) and held that estate duty payable is not a debt deductible while computing the net principal value of the estate. The question was answered in the negative and in favor of the revenue. Conclusion: The High Court dismissed E.D.C. No. 16/76, agreeing with the Tribunal that questions 1 and 2 were factual and not legal. In E.D.C. No. 6/75, the court answered questions 3 and 4 in the negative, ruling in favor of the revenue and clarifying that deductions for the wife's maintenance expenses and estate duty payable are not allowable under the Estate Duty Act.
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