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TMI Blog1987 (7) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... e Circular No. 1-D/ED dt. 26th Mar., 1968. We, therefore, direct the Assistant Controller to accept the value as shown by the accountable person in this regard. 3. The only other point pressed was with reference to the claim of deduction of a sum of Rs. 80,000 from the principal value of the estate. The claim arises thus : The deceased had a son and an unmarried daughter at the time of his death. Affidavits have been filed from three friends of the deceased to establish that prior to his death the deceased had discussed the question of settling his affairs to avoid any possible difference of opinion between them after his life time and had expressed a proposal to set apart a sum of Rs. 80,000 for the marriage of his daughter out of his es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Then the question arises whether a charge was, in fact, created and whether it resulted in any diminution of the rights of the deceased in the property held before his death. 6. The Supreme Court has pointed out in the case of Dattatreya Shanker Mote Ors. vs. Anand Chintaman Datar Ors. (1974) 2 SCC 799 after considering the provisions of s. 100 of the Transfer of Property Act that, "It is apparent from the provisions of the above section that a charge does not amount to a mortgage though all the provisions which apply to a simple mortgage contained in the preceding provision shall, so far as may be, apply to such charge. While a charge can be created either by act of parties or operation of law, a mortgage can only be created by act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, and a mortgage, where only some rights of ownership are transferred in a charge, assuming ownership in the property is transferred. 7. Therefore, even if we accept the affidavits produced by the accountable person as establishing that a charge was created, it had not resulted in reducing the full ownership of the deceased to a limited ownership and, consequently, the entire ownership rights of the deceased passed on his death without any diminution. 8. Secondly, it was submitted, the charge has to be considered to be in discharge of the obligation of the deceased to maintain and marry of his daughter. The Madras High Court has pointed out in the case of G. Sheenbbaagammal vs. CED (1986) 55 CTR (Mad) 368 : (1986) 162 ITR 445 at 449 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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