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TMI Blog2003 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... that the cash in hand and money in bank that belongs to the deceased in his individual capacity and is subject to estate duty. The amount due in the insurance policy does not belong to the deceased in his individual capacity, therefore, not subject to estate duty - - - - - Dated:- 9-7-2003 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT In this petition, under section 64(1) of the Estate Duty Act, 1953, the Tribunal has referred the following questions for our opinion: Question in R.A. No. 13/JP of 1984: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the estate left by the deceased belonged to the Hindu undivided family and only value of 1/4th share therei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the accountable person that the estate left by the deceased belonged to the Hindu undivided family and only 1/4th of the share of the estate can be taxed under the Estate Duty Act. The Appellate Controller of Estate Duty has also accepted the claim of the accountable person regarding other amounts which were in dispute, except the cash in hand, money in bank and the amount due under the insurance policy. That order has been challenged in appeal by the Controller of Estate Duty as well as by the accountable person, Shri Inder Jeet Singh. The Tribunal has confirmed the view taken by the Appellate Controller of Estate Duty holding that the estate left by H.H. Maharaja Rana Harish Chandra belonged to the Hindu undivided family and that the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were ancestral properties in his hands or not. The Tribunal, by the combined order dated November 25, 1980, clearly found that the properties having been inherited by the assessee (accountable person) constituted his ancestral properties for the assessment years 1967-68 to 1976-77. The father of the accountable person died on March 17, 1967, and he filed the last return for the assessment year 1966-67 on September 29,1966, in the status of individual, which was revised in the status about one day before the death by him. Returns for the earlier years also, i.e., prior to the assessment year 1966-67 had been filed by the deceased in the status of individual. For the assessment year 1966-67, the Tribunal decided that the properties in the ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e view that the properties were ancestral in the hands of the deceased also. Therefore, the Appellate Controller, in our view, has rightly directed the Assistant Controller of Estate Duty only to take the value of 1/4th share of the deceased in the Hindu undivided family property for the purpose of estate duty." The facts are also not in dispute before us that in the years 1967-68 to 1976-77, the property in the form of estate was assessed finally at the Tribunal's level as property belonging to the Hindu undivided family and that order has not been challenged further. Therefore, that order has become final. Once the Tribunal has accepted that the property in the form of estate left by the late H.H. Maharaja Rana Harish Chandra belonged t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash or money in hand. The amount payable on his death goes to the beneficiaries and there is no question of succession in respect of such amount, therefore, there is no question of estate duty on that amount. The estate duty is payable only when the amount belongs to the deceased. When the amount is due on the death of the deceased, that always belongs to the beneficiaries and cannot be said that the money or cash has been left by the deceased. In the result, we answer the question in R.A. No. 13/JP of 1984 in the affirmative, i.e., in favour of the accountable person, and against the Revenue. With regard to question referred to in R.A. No. 14/JP of 1984, we answer that the cash in hand and money in bank that belongs to the deceased in hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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