684/CBDT. - Income Tax - 684/CBDT

INSTRUCTION NO. 684/CBDT Dated : April 19, 1974 Section(s) Referred: 10 Statute: Estate Duty Act Attention is drawn to Circular No.3-D of 1963 dated the 1st August, 1963. It was stated in the circular that the words "to the extent that... appearing in Section 10 of Estate Duty Act did not have restrictive significance and they related to all properties taken under any gift, whenever made, from which or from the benefits of which the donor was not excluded. In other words, even where the donor retained only part of the interest in the property gifted by him, the value of the entire property would attract liability to estate duty. 2. The Board had occasion to re-consider the interpretation as set out in the above circular. The decision of the Calcutta High Court in the case of Rash Mohan Chatterjee (52 ITR ED 1) the decision of the Andhra Pradesh High Court in the case of Mohammed bai Vs. Controller of Estate Duty (69-ITR 770) and the recent decision of the Mysore High Court in the case of Controller of Estate Duty, Bangalore, Vs.Shri R.R.Srinivasa Murthy, (not reported so far) do not support the view taken by the Board. Having regard to the decisions of the various High Courts, the Board have decided to modify the instruction issued earlier and they now direct that the value of the interest retained by the deceased alone, and not the value of the entire property, should be included in the computation of principal value of estate. 3. Reference to High Court etc. which have already been filed on this point on the basis of interpretation set out in the Board's Circular No.3-D of 1953 should also be withdrawn.