1971 (4) TMI 25 - HC - Income Tax

Estate Duty Act, 1953 - interpretation of section 50 of the Estate Duty Act - whether persons who are entitled to relief under section 50 of the Estate Duty Act could only be dealt with under section 61 of the Act

Issues Involved:
1. Interpretation of Section 50 of the Estate Duty Act.
2. Applicability of Section 61 of the Estate Duty Act for relief under Section 50.
3. Timing of probate duty payment in relation to estate duty assessment.
4. Jurisdiction and means for granting relief under Section 50.

Issue-wise Detailed Analysis:

1. Interpretation of Section 50 of the Estate Duty Act:
Section 50 of the Estate Duty Act provides that the estate duty payable shall be reduced by an amount equal to one-half of the court-fees paid for obtaining probate, letters of administration, or a succession certificate. This section is intended to afford relief from estate duty where court-fees have been paid for obtaining representation to the estate of the deceased. The court emphasized that the relief under Section 50 should not be conditional upon the timing of the payment of probate duty. The word "paid" in Section 50 should be understood as "payable," ensuring that relief is granted regardless of whether the probate duty was paid before or after the estate duty assessment.

2. Applicability of Section 61 of the Estate Duty Act for relief under Section 50:
Section 61 deals with the rectification of mistakes in an order of assessment within five years from the date of the order. The court held that a claim for relief under Section 50, based on the actual payment of probate duty or additional probate duty, should not be treated as a rectification of a mistake under Section 61. The relief under Section 50 occurs after the final assessment of estate duty and does not impact the final assessment itself. Therefore, the accountable person is entitled to relief under Section 50 without invoking Section 61.

3. Timing of probate duty payment in relation to estate duty assessment:
The court rejected the revenue's argument that relief under Section 50 could only be claimed if probate duty was paid before the final assessment of estate duty. The court noted that probate duty paid at any time, whether before or after the estate duty assessment, should be eligible for relief under Section 50. This interpretation prevents discrimination and ensures that the statutory relief is not rendered an empty formality.

4. Jurisdiction and means for granting relief under Section 50:
The court emphasized that the absence of a specified procedure in the Act for granting relief under Section 50 does not imply that relief cannot be granted. Courts have a duty to interpret statutory provisions in a manner that advances their purpose. The court cited authoritative texts on statutory interpretation, stating that where an Act confers jurisdiction, it also grants the power to do all acts necessary to execute that jurisdiction. Therefore, the appropriate authority has the jurisdiction to grant relief under Section 50, even if the Act does not explicitly detail the means to do so.

Conclusion:
The court allowed the writ petitions, holding that relief under Section 50 should be granted regardless of when the probate duty was paid. The court rejected the revenue's contention that such relief could only be sought under Section 61 and emphasized the duty of courts to ensure that statutory provisions achieve their intended purpose. The quantum of relief and the amount to be refunded were directed to be worked out by the department.

Petitions allowed.

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