735/CBDT - Income Tax - 735/CBDT

INSTRUCTION NO. 735/CBDT Dated : August 12, 1974 Section(s) Referred: 31 Statute: Estate Duty Act Section 31 of the Estate Duty Act provides that where the Board is satisfied that estate duty has become payable on any property passing upon the death of any person, and that subsequently within five years, estate duty has again become payable on the same property or any part thereof, the amount of estate duty payable on the second death in respect of the property shall be reduced in the manner laid down in the Section. Explanation 2 of the Section further lays down that in computing any period for the purpose of this section, deaths occurring within a period of three months after the death of any person in respect of whose property estate duty has become payable, shall be treated as one death, and no estate duty shall again be payable on the same property by reason of the subsequent deaths occurring within the said period of three months. 2. A doubt has been raised whether the sanction of the Board is required in a case where the second death occurs within a period of three months of the first death. It is clarified that relief under Explanation 2 of Section 31 cannot be allowed by the Assistant Controller without the sanction of the Board because satisfaction of the Board that the relief is allowable is essential under the Section. The Assistant Controllers, when they come across such a case, should therefore, make a report to the Board through the Controller of Estate Duty, intimating the factual position so that the necessary relief may be granted by the Board. 3. These instructions may be brought to the notice of all the officers working in the charge.