9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1969 (12) TMI 23 - HC - Income TaxEstate Duty Act 1953- Assisstant Controller of Estate Duty held that the sum of Rs. 50, 111 is liable to estate duty on the view that the donation was made within six months of the death of the deceased - amount of Rs. 50, 111 was not correctly included in the estate of the deceased as property deemed to pass on his death under section 9
Issues:
Assessment of estate for inclusion of a donation amount in deceased's estate under section 9 of the Estate Duty Act, 1953. Analysis: The judgment pertains to the assessment of the estate of a deceased individual who had promised to donate a sum towards the construction of a hospital building. The deceased issued cheques towards the promised donation, with one cheque encashed within six months of his death and the other beyond six months. The Assistant Controller of Estate Duty included the entire donation amount in the deceased's estate, considering the donation made within six months of death. The Central Board of Revenue upheld this decision based on the encashment date of the cheques. The High Court analyzed the case, emphasizing that once a promise of donation is made and the donee acts upon it, the donor cannot revoke the promise. Referring to legal principles, the court highlighted that if the payment by cheques relates back to the issue date, the donation is considered made beyond six months from the date of death, thus not liable for inclusion in the estate. Citing precedents, the court noted that if cheques are taken unconditionally and honored, the payment is deemed made on the date of cheque delivery. Drawing a distinction from a previous case, the court held that in the present scenario, the promise of donation preceded the construction work, and thus, the payments relate back to the cheque issue date, which is beyond six months from the deceased's death. Consequently, the court ruled in favor of the assessee, stating that the donation amount should not be included in the deceased's estate under section 9 of the Act. The judgment concluded by directing each party to bear its own costs, considering a prior award of costs in a related case.
|
