9911796707
|
Home
Issues Involved:
1. Applicability of Section 32 of the Estate Duty (ED) Act. 2. Applicability of Section 33(1)(n) of the ED Act. 3. Determination of the principal value of the estate. Issue-wise Detailed Analysis: 1. Applicability of Section 32 of the Estate Duty (ED) Act: The primary issue was whether Section 32 of the ED Act applied to the property in question. The accountable person argued that under Section 32, no estate duty was payable on the property since it had already been included in the estate duty assessment of the deceased's husband. The Department contended that Section 32 applies only to cases of intestate succession and not to testamentary succession. The Tribunal analyzed the language and legislative history of Section 32. It noted that the term "devolved" in Section 32 generally means the passing of property from a deceased person to a living person, and could include both intestate and testamentary succession. However, the Tribunal emphasized the significance of the term "reversioners" in the section, which traditionally refers to heirs who would inherit if the widow had not succeeded to the property. The Tribunal concluded that Section 32 was intended to mitigate the hardship of double taxation in cases of intestate succession where the widow inherited a limited estate. Therefore, Section 32 did not apply to testamentary succession, and the value of the property was includible in the assessment. 2. Applicability of Section 33(1)(n) of the ED Act: The accountable person claimed an exemption under Section 33(1)(n) of the ED Act, arguing that the deceased had resided in the property, and thus, an exemption of Rs. 1 lakh should be granted. The Tribunal noted that the Andhra Pradesh High Court in CED vs. Sanka Simhachalam had held that even a property in which the deceased had a limited interest could qualify for the exemption under Section 33(1)(n). Since there was no contrary decision, the Tribunal applied this principle and granted the exemption of Rs. 1 lakh. 3. Determination of the Principal Value of the Estate: The Asstt. Controller initially determined the value of the property as Rs. 2,30,000, which was contested by the accountable person. The Appellate Controller accepted the accountable person's contention that Section 32 applied, reducing the estate duty payable. However, the Tribunal, having concluded that Section 32 did not apply, upheld the Asstt. Controller's valuation of Rs. 2,30,000 as proper and reasonable. Consequently, the principal value of the estate was determined as Rs. 2,57,041, with the estate duty payable being Rs. 20,556.15. Conclusion: The appeal was partly allowed. The Tribunal held that Section 32 of the ED Act did not apply to the property in question, and its value was includible in the estate duty assessment. However, an exemption of Rs. 1 lakh was granted under Section 33(1)(n) of the ED Act, as the deceased had resided in the property. The assessment was directed to be modified in accordance with these findings.
|
