1981 (3) TMI 144 - AT - Income Tax

Summary

Issues:
1. Estate duty payable deduction from principal value of estate.
2. Provision for maintenance and marriage expenses of unmarried daughters and widows in computing deceased's interest in joint family property.

Analysis:

Issue 1: Estate duty payable deduction from principal value of estate
The accountable person appealed, arguing that estate duty payable should be deducted from the principal value of the estate. However, various High Courts, including Karnataka, Andhra Pradesh, Gujarat, and Allahabad, had ruled against such a deduction. The Appellate Tribunal upheld the decision, citing previous judgments. The accountable person's request to keep the issue open due to pending Supreme Court consideration was rejected.

Issue 2: Provision for maintenance and marriage expenses
The appeal also questioned whether provision for maintenance and marriage expenses of unmarried daughters and widows should be made before computing the deceased's interest in joint family property. The deceased, as the karta of a joint Hindu family, left behind a widow, two sons, and an unmarried daughter. The accountable person claimed Rs. 40,000 should be set aside for maintenance and marriage expenses, reducing the deceased's interest value. However, the department held no such provision was necessary, resulting in a higher valuation. The Tribunal referred to Hindu Law and previous court decisions, including one by the Madras High Court, which rejected the claim for maintenance and marriage expenses out of joint family property. Despite arguments regarding the Hindu Adoptions and Maintenance Act, the Tribunal upheld the decision, stating that the issue was settled by the Madras High Court and could not be distinguished.

In conclusion, the appeal was dismissed, affirming that estate duty payable cannot be deducted from the principal value of the estate and that no provision for maintenance and marriage expenses of unmarried daughters and widows should be made when computing the deceased's interest in joint family property.