Estate Duty-Exemptions under clause(1)&(n) of sub sec.(1) of Sec.33. - Income Tax - 1420/CBDT

INSTRUCTION NO. 1420/CBDT Dated: November 25, 1981 Your attention is invited to the provisions contained in clause (1) and (n) of sub-section (1) of Section 33 of Estate Duty Act, 1953. Clause (1) specifically exempts "any one building in the occupation of a Rule declared by the central government as his official residence under para 13 of the merged states order 1949. Whereas clause n exempts one house or part thereof exclusively used by the deceased for his residence to the extent the principal value thereof does not exceed rupees one lakh if such house is situated in a place with a population exceeding 10,000 and the full principal value thereof in any other case. 2. The question whether the benefit of both these exemptions would be available in any given case has been considered by the board in the light of the boards views contained in their instructions No.181 issued in connection with wealth tax proceedings. The board are of the view that the benefits under both the clauses of sec. 33'1 would be available to any assessee covered under these provisions. That is because there is no specific restriction in the act to grant only one of the two exemptions in the estate duty assessments. This is so because sec.33 of the act which provides for the various exemptions starts with the wording to the extent specified against each of the clauses of this sub-section. Nowhere in the said sec or clauses has it been specified that only one of the 2 clause will be applicable in the case of a ruler. If exemption under both the clauses mentioned above are claimed such assessee will be entitled to both the exemptions. In this connection it may be mentioned that the supreme court has also held that where two interpretations are possible the interpretation which is beneficial to the subject will have to be adopted. There cannot be any taxation by implication unless it is specifically brought out in the act. 3. Accordingly, if the conditions mentioned in clause 1 of the sub-sec 1 of sec 33 are satisfied in respect of a deceased ruler the accountable person would be entitled to the exemption available to him under clause n of sub-section 33 of the estate duty act. 4. These instructions may kindly be brought to the notice of all the officers working in your charge.