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TMI Blog1987 (1) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... to Mrs. Kalavati Veerender Dhoot, the wife of the deceased towards compensation in the motor car accident. The accountable person claimed that the sum of Rs. 60,300 is not includible in the principal value of the estate of the deceased as the policy was not taken by the deceased. The Assistant Controller did not accept this submission. He included the sum of Rs. 60,300 in the estate of the deceased. On appeal, the Appellate Controller confirmed the same. Both the authorities followed the decision of the Bombay High Court in Smt. Amy F. Antia v. ACED [1983] 142 ITR 57. Against the same the accountable person has preferred this appeal. 2. The learned counsel for the accountable person urged that the deceased did not pay the premium of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the first time on account of his death in a motor car accident. There was no property in the shape of Rs. 60,300 existing during his lifetime which could be disposed of by him. That property arose on the death of the deceased. Hence it cannot be said that the said sum of Rs. 60,300 passed on the death of the deceased as the property was not there before his death. It is the legal heirs who got the amount after his death. Thus, the sum of Rs. 60,300 is not includible in the principal value of the estate of the deceased. 4. In CED v. Kasturi Lal Jain [1974] 93 ITR 435 (J K), the deceased Babu Lal Jain died in an air crash and his heirs were paid compensation of Rs. 42,000 by the Indian Airlines Corpn. The question arose whether this amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e property can be deemed to have passed. The property in this case is the sum of Rs. 2 lakhs which became receivable by the nominee or the legal representative of the deceased because of the death of the deceased in an air accident during the subsistence of the policy. That right to the sum arose because (a) the deceased died, (b) in air accident, (c) during the subsistence of the policy, that being on that contingency after death. In our opinion, therefore, no property can be deemed to pass on the death of the deceased. In any event, during the lifetime of the deceased, an interest was vested totally and irretrievably in the hands of the beneficiary or the legatee or the nominee. The death did not cause property to the legatee or the nomin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance policy with an insurance company in respect of the life of each of its employees for which the premium was paid by it. Ramanjum died in a car accident. The employer paid Rs. 65,000 under the above personal accident insurance policy to the legal heirs. The question arose whether the said sum of Rs. 65,000 under the above personal accident insurance policy, to the legal heirs. The question arose whether the said sum of Rs. 65,000 is includible in the principal value of the estate of the deceased. The Madras High Court held that it is not includible. The ratio laid down in the above decisions would squarely apply to the instant case. No doubt the Bombay High Court has taken a contrary view in Smt. Amy F. Antia's case. But this decision i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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