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Issues:
1. Validity of reassessment proceedings under the Estate Duty Act, 1953. 2. Time limitation for initiating reassessment proceedings. 3. Disputed additions made during reassessment proceedings. Detailed Analysis: Issue 1: Validity of reassessment proceedings The case involved cross-appeals under the Estate Duty Act, 1953, concerning the estate of a deceased individual. The accountable person, in this case, had filed an estate duty return, and the assessment was finalized by the Assistant Controller. The audit raised objections regarding the treatment of insurance proceeds and assets belonging to the deceased and the Hindu Undivided Family (HUF). Subsequently, reassessment proceedings were initiated by the Assistant Controller based on audit objections. The Appellate Controller annulled the reassessment, stating that it was bad in law. The revenue appealed this decision, arguing that the reassessment was valid. The Appellate Tribunal upheld the decision of the Appellate Controller, concluding that the reassessment was invalid and annulling the same. Issue 2: Time limitation for initiating reassessment proceedings The initiation of the second reassessment proceedings was challenged on the grounds that it was barred by time. The notice for reassessment was issued after the expiration of the three-year period from the date of the original assessment, as required by section 73A(b) of the Act. The Tribunal found that the notice for reassessment was dated later than the prescribed deadline, rendering the second reassessment proceedings invalid and out of time. The Tribunal referred to a previous case to support its decision and emphasized the importance of complying with the statutory time limits for reassessment proceedings. Issue 3: Disputed additions made during reassessment proceedings During the reassessment proceedings, additions were made to the dutiable estate, including the cost of two plots. The accountable person disputed these additions, arguing that the reassessment was not only barred by time but also incorrect on merit. The Tribunal did not delve into the merit of the additions due to the finding that the reassessment was invalid and out of time. Consequently, the Tribunal dismissed the revenue's appeal and allowed the accountable person's appeal, annulling the reassessment proceedings. In conclusion, the Appellate Tribunal upheld the decision of the Appellate Controller, ruling that the reassessment proceedings were invalid and barred by time. The Tribunal emphasized the importance of adhering to statutory time limits and annulled the reassessment, dismissing the revenue's appeal and allowing the accountable person's appeal.
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