Payment of Estate Duty demand to be postponed. - Income Tax - 385/CBDT

INSTRUCTION NO. 385/CBDT Dated: February 23, 1972 Attention is invited to the Calcutta High Court's judgment in the case of Premnath Khadelwal Vs. Assistant Controller of Estate Duty (77 I.T.R. 949). The High Court's decision has been accepted on the advice of Ministry of Law. 2. U/S 70(1) of the Estate Duty Act, 1953, the Controller may allow payment of Estate Duty demand to be postponed for such period, to such extent, and on payment of such interest not exceeding four per cent or any higher interest yielded by the property, and on such other terms as he may think fit. There is, thus no general provision for charging interest for the period during which the Estate Duty demand remains outstanding, unless an extension of time to pay the same is allowed at the request of the Accountable Person in which case the condition regarding the charge of interest has necessarily to be applied. In the aforesaid circumstances, in cases where the Assistant Controller does not take energetic action to press for the recovery of the Estate Duty demand no interest would be chargeable for delayed payments. This can be avoided if the Asst. Controllers are vigilant and press for the unpaid demands immediately after the due date so that the Accountable Persons either pay off the outstanding demands or seek extension of time allowable only on the condition inter alia of payment of interest. 3. The Board, desire that necessary instructions in this behalf may please be issued by you to the Asst. Controllers working in your charge, the Deputy Controllers may also be asked to keep watch over compliance.