Estate Duty u/s 33(1)(n) of the Estate Duty Act, 1953. - Income Tax - 939/CBDT

INSTRUCTION NO. 939/CBDT Dated : March 22, 1976 Section(s) Referred: 33(1)(n) Statute: Estate Duty Act Under section 33(1)(n) of the Estate Duty Act, 1953, no Estate Duty is payable on the value of one house or part thereof exclusively used by the deceased for his residence to the extent the principal value thereof does not exceed Rs. 1 lakh, if such house is situated in a place with a population exceeding ten thousand and the full principal value thereof in any other case. 2. A question had arisen whether exemption u/s 33(1) (n) could be granted in respect of a house or part thereof which was used exclusively by the deceased for his residence , if; (i) the deceased had only life-interest in the house or part thereof; and (ii) the house or part thereof had been gifted away by the deceased and was demand to pass u/s 9 or 10 of the Act. 3. The Board considered the above question and issued instructions vide their letter of even number dated 29th November, 1973. The instructions stated that pending receipt of the final advice of the Ministry of Law, the Assistant Controllers should proceed on the footing that exemption u/s 33(1)(n) is not available in the types of cases mentioned above. Final advice of the Ministry of Law has now been received. The Board are advised that exemption u/s 33(1)(n) would be available in both the types of cases mentioned above. 4. These instructions may please be brought to the notice of all the assessing officers. All cases which had been decided in the light of Board's letter F. No. 309/5/73-ED dated 29-11-73 may be reviewed in the light of the present Instruction and necessary relief may be allowed u/s 61 of the Estate Duty Act. in cases where requests had been made to the AACs or to the Appellate Tribunal for keeping the appeals pending, requests may now be made for the disposal of those appeals in the light of the present Instruction. The appeals or reference applications which may have been filed against adverse appellate decisions in this regard, may be withdrawn.