1990 (1) TMI 125 - AT - Income Tax

Issues Involved:
1. Definition and scope of 'maintenance' under Muslim Law.
2. Inclusion of marriage expenses of unmarried daughters within 'maintenance.'
3. Nature of duty of a Muslim towards providing maintenance to minor sons and marriage expenses of unmarried daughters.
4. Whether the liability of a Muslim for maintenance and marriage expenses is personal or an automatic charge on his property.
5. Entitlement of sons and daughters to claim both inheritance and maintenance, including marriage expenses.
6. Validity of claims for deductions of Rs. 3,24,898 and Rs. 1,24,040, and the appropriateness of the deductions granted by the Appellate Controller.
7. Levy of interest for late filing of the estate duty return and late payment of provisional demand.

Detailed Analysis:

1. Definition and Scope of 'Maintenance' under Muslim Law:
The Tribunal referred to Mulla's Principles of Mahomedan Law, which defines maintenance as including food, raiment, and lodging. It concluded that, according to Muslim Law, marriage expenses do not fall under the definition of 'maintenance.' The Tribunal emphasized that marriage in Muslim Law is a contract (Nikah) and not a sacrament, thus not necessitating the provision of marriage expenses by the father.

2. Inclusion of Marriage Expenses of Unmarried Daughters within 'Maintenance':
The Tribunal held that the liability to provide marriage expenses for daughters, if it exists under Muslim Law, is a personal liability of the father and does not form an automatic charge on his property after his death. There was no evidence of any claim for maintenance or marriage expenses against the deceased during his lifetime, nor any decree creating a charge on his property for such expenses.

3. Nature of Duty of a Muslim towards Providing Maintenance to Minor Sons and Marriage Expenses of Unmarried Daughters:
The Tribunal reiterated that the duty to provide marriage expenses is personal and does not create an automatic charge on the deceased's estate. The heirs must look to their inherited share for satisfying any maintenance claims.

4. Whether the Liability of a Muslim for Maintenance and Marriage Expenses is Personal or an Automatic Charge on His Property:
It was concluded that maintenance claims do not automatically become debts or encumbrances on the deceased's property unless a decree quantifying the liability was obtained during the deceased's lifetime. Therefore, the claims for marriage expenses and maintenance could not be deducted from the estate under section 44 of the Estate Duty Act.

5. Entitlement of Sons and Daughters to Claim Both Inheritance and Maintenance, Including Marriage Expenses:
The Tribunal found that sons and daughters cannot claim both inheritance and maintenance. They must look to their inherited share for any maintenance claims. The Tribunal rejected the accountable person's argument that the sons' shares should be aggregated only for rate purposes and that they are entitled to a duty rebate.

6. Validity of Claims for Deductions of Rs. 3,24,898 and Rs. 1,24,040, and the Appropriateness of the Deductions Granted by the Appellate Controller:
The Tribunal held that the deductions of Rs. 3,24,898 for the daughters' shares and Rs. 1,24,040 for the sons' shares claimed by the accountable person were not sustainable. The Tribunal ruled that neither the Rs. 80,000 granted for marriage expenses nor the Rs. 30,000 granted for maintenance of the minor son by the Appellate Controller should be deducted from the estate of the deceased.

7. Levy of Interest for Late Filing of the Estate Duty Return and Late Payment of Provisional Demand:
The Tribunal examined section 53(3) and Rule 42 of the Estate Duty Rules. It concluded that interest could only be charged at a maximum rate of 6% for the period up to 31-12-1985, as per the extension granted. No interest could be charged for the period from 31-12-1985 to 21-4-1986, as no extension was granted for this period. The Tribunal also found no provision in the Estate Duty Act authorizing the levy of interest for late payment of provisional assessment, thus ruling the interest of Rs. 3,909 as illegal.

Conclusion:
The Tribunal allowed the appeal by the accountable person partly, specifically on the issue of interest for late filing and late payment, and fully allowed the appeal filed by the revenue, rejecting the claims for deductions related to maintenance and marriage expenses.

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