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Issues Involved:
1. Nature of the properties held by the deceased Mahanth (personal or trust properties). 2. Applicability of the Estate Duty Act, 1953, to the properties of Madra Math. 3. Validity of the ex parte assessment by the Assistant Controller of Estate Duty. Issue-wise Detailed Analysis: 1. Nature of the Properties Held by the Deceased Mahanth: The primary issue was whether the properties belonging to Madra Math were personal properties of the deceased Mahanth or held by him as a trustee. The Assistant Controller and the Central Board of Revenue concluded that the properties were personal properties based on the judgment in Title Suit No. 1 of 1932 by the District Judge of Gaya. The District Judge found that the properties were to be enjoyed by the Mahanth and his disciples, with no indication of a public trust. However, the properties were not deemed personal properties either. The learned District Judge concluded that the properties were subject to a private trust, thus negating both the plaintiff's claim of a public trust and the defendant's claim of personal property. 2. Applicability of the Estate Duty Act, 1953, to the Properties of Madra Math: The court had to determine if the properties were liable for estate duty under the Estate Duty Act, 1953. The accountable person argued that if the properties were trust properties, whether public or private, estate duty would not be applicable. The court referred to sections 22 and 23 of the Act, which exempt property held in trust from estate duty. Section 22 specifies that property held by the deceased as a trustee for another person is not deemed to pass on the death of the deceased. Section 23 addresses settled property, indicating that if the interest of any person under the settlement fails or determines by reason of death, the property does not pass by reason only of such failure or determination. The court concluded that since the properties were held under a private trust, they were not subject to estate duty. 3. Validity of the Ex Parte Assessment by the Assistant Controller of Estate Duty: The Assistant Controller finalized the assessment ex parte due to the failure of the accountable person to produce supporting documents. The court noted that even in ex parte assessments, the assessing authorities are bound to consider all material on record. The accountable person's argument that the assessment was arbitrary and lacked consideration of relevant material was noted but not addressed in detail due to the conclusion on the primary issue of the nature of the properties. Conclusion: The court held that the properties of Madra Math were trust properties of a private character and not personal properties of the deceased Mahanth. Consequently, the properties were not liable for estate duty under the Estate Duty Act, 1953. The court quashed the order of estate duty as unsustainable and answered the reference in the negative. The application was allowed, and the ex parte assessment was deemed unjustified in the peculiar circumstances of the case. Separate Judgments: Wasiuddin J. concurred with the judgment and agreed with the conclusions reached.
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