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Issues:
- Whether the value of land transferred to a trust by a deceased person is exigible to estate duty. - Applicability of section 22 of the Estate Duty Act in the case. - Whether a property transferred to a public charitable trust is liable to estate duty. - Interpretation of the scheme of the Estate Duty Act regarding properties passing on the death of a person. - Distinction between properties exigible to duty and those exempted from duty under the Act. Analysis: The case involved a dispute regarding the estate duty assessment of a deceased person's estate, specifically focusing on the transfer of land to a trust. The Assessing Officer initially held that the property was exigible to duty due to the deceased creating the trust within two years of his death and being one of the trustees. The first appellate authority, however, allowed the claim, stating that section 22 of the Act was not applicable. The departmental appeal challenged this decision. The department argued that the property was not entitled to exemption under section 22, making it liable to estate duty. They cited a relevant case to support their position. On the other hand, the accountable person's counsel contended that the property was not liable to duty as it was transferred to a public charitable trust more than six months before the deceased's death, as per the Act's provisions. The Tribunal analyzed the scheme of the Estate Duty Act, emphasizing that duty is leviable on properties passing on a person's death, either actually or deemed by law. It highlighted the distinction between properties exigible to duty and those exempted, stating that if a property does not pass on death or is not deemed to pass, it is not liable to duty. The Tribunal concluded that the subject property, transferred to a charitable trust before the deceased's death, was not exigible to duty, and section 22 could not be invoked to charge the property. Regarding the Andhra Pradesh case cited by the department, the Tribunal found it distinguishable and reiterated that the subject property's exemption from duty was justified. Ultimately, the Tribunal upheld the first appellate authority's decision, dismissing the departmental appeal. In conclusion, the Tribunal's detailed analysis focused on the interpretation of relevant provisions of the Estate Duty Act, emphasizing the distinction between properties liable to duty and those exempted, particularly in cases involving transfers to charitable trusts.
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