1981 (11) TMI 89 - AT - Income Tax

Summary

Issues:
1. Valuation of household goods
2. Aggregation of share of lineal descendant
3. Exclusion of specific share in lineal descendant
4. Liability on account of income-tax and wealth-tax under Voluntary Disclosure Scheme

Valuation of household goods:
The accountable person objected to the valuation of household goods at Rs. 15,000 instead of Rs. 10,000. The tribunal found no justification for the enhancement made by the departmental authorities. The addition of Rs. 5,000 was deleted as the basis for the valuation was not provided by the Asstt. CED.

Aggregation of share of lineal descendant:
The appellant contested the aggregation of the share of the lineal descendant under the Estate Duty Act. Despite relying on a Madras High Court decision, the tribunal upheld the aggregation based on the Punjab & Haryana High Court's dissenting decision.

Exclusion of specific share in lineal descendant:
The accountable person sought exclusion of a specific share in the lineal descendant's estate. The tribunal referred to a Calcutta High Court decision and a recent Supreme Court decision to support the exclusion of the share, directing the exclusion of the amount from aggregation.

Liability on account of income-tax and wealth-tax under Voluntary Disclosure Scheme:
The Revenue objected to considering income-tax and wealth-tax liabilities related to voluntary disclosures made after the deceased's death. The tribunal, following a Supreme Court decision, allowed the accountable person's claim for deduction of these liabilities, contrary to the Mysore High Court's decision.

In conclusion, the accountable person's appeal was partly allowed concerning the valuation of household goods and the exclusion of specific shares, while the Revenue's appeal was dismissed regarding the liability on account of income-tax and wealth-tax under the Voluntary Disclosure Scheme.