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Issues:
Interpretation of provisions under sections 18A of the Gift Tax Act and 50A of the Estate Duty Act regarding deduction of stamp duty and gift tax paid. Analysis: The judgment revolves around the interpretation of provisions under sections 18A of the Gift Tax Act and 50A of the Estate Duty Act concerning the deduction of stamp duty and gift tax paid in a specific case. The deceased had made a gift of cash and landed property, with stamp duty paid on the property. The accountable person claimed a deduction of the total gift tax payable, while the Asst. CED allowed a deduction only to the extent of the gift tax actually paid. On appeal, the Appellate CED relied on precedent and allowed the full deduction claimed by the accountable person. The Revenue, aggrieved by this decision, appealed to the Appellate Tribunal. During the appeal, the authorized representatives for both parties presented their arguments. The representative for the accountable person contended that the entire gift tax amount should be deductible under section 50A of the Estate Duty Act, emphasizing the deduction of stamp duty under section 18A of the Gift Tax Act. On the other hand, the Departmental Representative argued that only the gift tax paid, not the gift tax payable, is deductible under section 50A, and there is no provision for deducting stamp duty from the estate duty payable. The Departmental Representative also highlighted the distinction in the precedent relied upon by the accountable person. The Tribunal analyzed the provisions of section 18A of the Gift Tax Act and section 50A of the Estate Duty Act. Section 18A allows for a deduction of stamp duty paid on the instrument of gift from the gift tax payable. In contrast, section 50A focuses on the gift tax actually paid, not the gift tax payable. The Tribunal clarified that the deduction under section 50A is based on the gift tax paid, and in the present case, the Asst. CED correctly allowed the deduction based on the gift tax paid after considering the stamp duty deduction under section 18A. Referring to a relevant precedent, the Tribunal emphasized that the deduction under section 50A is for the entire amount assessed and paid as gift tax, without any reduction for credits given to the donor under other provisions. Ultimately, the Tribunal concluded that the Appellate CED was not justified in allowing the full deduction claimed by the accountable person. The Tribunal allowed the appeal, set aside the Appellate CED's order, and reinstated the Asst. CED's decision regarding the deduction of gift tax paid.
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