Impress upon the Assistant Controllers of Estate Duty the need for looking into the income-tax, wealth-tax and gift-tax records of the deceased to ensure that the estate duty assessment is net at variance with the information available in these records. - Income Tax - 544/CBDT

INSTRUCTION NO. 544/CBDT Dated : May 8, 1973 I am directed to invite your attention to Board's Instruction No. 172 dated 15th May, 1970 (issued from file No. 4/69/69-E.D), while were reiterated in Instructions No. 494 dated 10th January, 1973 (issued from file No. 309/6/72-E.D.) on above subject. 2. A case in which the value of an immovable property adopted in estate duty assessment widely varied from its value returned for wealth-tax assessments came to the notice of the Board recently. The deceased died on 18-10-1967. In the estate duty assessment completed on 31-10-1969 the value of the property was shown at Rs. 1,93,000/- (based on the report of an approved valuer) in the wealth-tax returns for the assessment years from 1966-67 onwards. The wealth-tax returns were filed by the legal representatives of the deceased in September, 1969 i.e. before the completion of the estate duty assessment on 31-10-1969. The under-valuation of the property resulted on short assessment of the estate duty by Rs. 1,33,000/- involving duty of Rs. 32,000/- and odd. This loss of revenue would not have arisen if the wealth-tax records of the deceased had been scrutinised by the Assistant Controller or Estate Duty. There may be instances of this type. 3. The Board, therefore, desire that you should impress upon the Assistant Controllers of Estate Duty the need for looking into the income-tax, wealth-tax and gift-tax records of the deceased to ensure that the estate duty assessment is net at variance with the information available in these records. 4. The Board also wish to reiterate their instance in F. No. 309/6/72-E.D. dated 10-1-1973. The Income-tax Wealth-tax Officers should promptly pass on the inform about the death of any of their assessees, the prince value of whose estate duty is likely to exceed Rs. 50,000 to the Assistant Controller of Estate Duty. They she communicate to the Assistant Controller of Estate Duty further information which may be received and which relevant to the estate duty assessment of the deceased.