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Issues:
1. Validity of the notice issued under section 55 of the Estate Duty Act, 1953. 2. Interpretation of section 73A(a) of the Act regarding the time limit for commencing estate duty proceedings. 3. Determining whether the estate duty return was filed voluntarily by the accountable person. Analysis: Issue 1: Validity of the notice under section 55 The appeal was against the Appellate Controller's decision annulling the assessment made by the Assistant Controller. The main contention was that the notice under section 55 was issued beyond the time limit specified in section 73A(a) of the Act, making it invalid. The Appellate Controller found that the return was in response to the notice issued by the Assistant Controller, indicating that the proceedings for levy of estate duty were initiated after the expiry of the five-year limit from the date of death. This led to the conclusion that the assessment was time-barred, resulting in the appeal by the revenue. Issue 2: Interpretation of section 73A(a) regarding time limit The departmental representative argued that if a voluntary return of estate duty is filed by the accountable person beyond five years from the date of death, the time limit specified under section 73A(a) would not apply. This is because, in such cases, it cannot be said that the Assistant Controller has commenced any proceedings for the levy of estate duty. The section clearly states that the proceedings should be initiated by the Assistant Controller, implying no limitation when proceedings are initiated by the accountable person. Issue 3: Voluntariness of the estate duty return The crucial point was whether the estate duty return was filed voluntarily by the accountable person. The dictionary meaning of "voluntary" was considered, indicating that the return was not voluntary due to the effect of the ab initio void notice issued by the Assistant Controller, compelling the accountable person to submit the return. Therefore, the return was not equated with a voluntary filing for specific purposes. Consequently, the Appellate Controller's decision was upheld, and the revenue's appeal was dismissed. This judgment clarifies the interpretation of statutory provisions regarding the time limit for commencing estate duty proceedings, the validity of notices issued under the Act, and the determination of voluntary filings by accountable persons.
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