748/CBDT. - Income Tax - 748/CBDT

INSTRUCTION NO. 748/CBDT Dated : April 30, 1974 Section(s) Referred: 50 Statute: Estate Duty Act Section 50 of the Estate Duty Act provides that "where any fees have been paid under any law relating to court fees in force in any State for obtaining probate, letter of administration or a succession certificate in respect of any property on which estate duty is leviable under this act, the amount which is equal to the court fees so paid." 2. A doubt has been raised about the extent to which relief u/s 50 of the Estate Duty Act should be allowed in respect of :- (1) property which has been subjected to both court fees and estate duty but the value of which for the purposes of court fees is more than that subject to estate duty; and (2) the property which has been subjected to court fees but is exempt, wholly or in part; u/s 31 of the Estate Duty Act. 3. The Karnataka High Court in the case of Henry Edward Morrison Vs. Assistant Controller of Estate Duty, Bangalore (in writ petition No. 2587 of 1971 unreported) held that u/s 50 of the Estate Duty Act, court fees paid on some property for obtaining probate cannot be deducted from the estate duty payable on some other property and the relief u/s 50 would be available on that part of property which is common both for payment of court fees and for payment of estate duty. 4. The Board are advised that the words "leviable" and "payable" occurring in Section 50 of the Estate Duty Act carry different connotations. Under Section 5 of the Estate Duty Act, duty is leviable on all property passing on demand is leviable under the charging section even in response properties which are mentioned in Section 51, though enjoy exemption for the purposes of computation of estate duty. Thus relief u/s 50 has to be allowed fees are paid in respect of the property which may be from payment of duty u/s 31 of the Estate Duty similarly, court-fees paid on any property in respect duty, irrespective of the difference in valuation of property for the purposes of court fees and estate duty. 5. A copy of the advice of Law Ministry in this response is enclosed.