1984 (1) TMI 91 - AT - Income Tax

Summary

Issues:
- Contention regarding assessment of share of lineal descendants in estate duty under section 34(1)(c) of the Estate Duty Act, 1953.

Analysis:
1. The department contended that the Appellate Controller erred in holding that the share of lineal descendants cannot be assessed to estate duty under section 34(1)(c) of the Estate Duty Act, 1953. The accountable person argued that the share of lineal descendants should not be included in the estate passing on the deceased's death, citing relevant judicial decisions.

2. The Appellate Controller, based on decisions from the Income-tax Appellate Tribunal and the Madras High Court, ruled in favor of the accountable person, deleting the addition representing the share of lineal descendants in the estate value. The department contested this decision before the Tribunal.

3. The department cited multiple cases supporting their contention that the share of lineal descendants in joint family property should be included in the estate value for aggregation under section 34(1)(c). The accountable person relied on the Appellate Controller's order and Tribunal decisions from Ahmedabad and Bombay benches.

4. After considering arguments from both sides, the Tribunal noted that the Ahmedabad Bench decision did not consider subsequent judicial decisions. The Tribunal found that the Patna High Court and other High Courts supported including the share of lineal descendants in the estate value. As most judicial decisions favored the department's contention, the Tribunal reversed the Appellate Controller's decision and allowed the department's appeal.

5. The Tribunal held that the interest of lineal descendants in joint family property governed by Mitakshara law should be included in the estate value for determining estate duty under section 34(1)(c). Consequently, the department's appeal was allowed.