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TMI Blog2004 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... stion at Rs. 58,000 then liability towards unpaid instalments of Rs. 55,350 if it is taken as debt ought to be deducted from the value of that house. In this view of the matter, the Tribunal was not justified in allowing the liability of Rs. 55,350 while determining the value of the estate left by the deceased. In view of the foregoing discussion, we answer the question referred to us in the negative, i.e., in favour of the Revenue - - - - - Dated:- 30-7-2004 - Judge(s) : R. K. AGARWAL., K. N. OJHA. JUDGMENT The Income-tax Appellate Tribunal, Delhi, has referred the following question of law under section 64(1) of the Estate Duty Act, 1953, hereinafter referred to as "the Act" for the opinion of this court: "Whether, on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d treated as exempt under section 33(1)(n) of the Act. There was no question of allowing any separate deduction of Rs. 55,350. On appeal, the Controller of Estate Duty (Appeals) upheld the order of the Assistant Controller of Estate Duty denying the deduction of the liability of Rs. 55,350 as all the instalments of the house purchased from Avas Avam Vikas Parishad had not been paid. On further appeal, the learned Tribunal has accepted the contention of the accountable person. The Tribunal has held that this amount of Rs. 55,350, represented a liability by the deceased and the amount was liable to be deducted from the value of the estate. The Tribunal also held that this deduction could not be disallowed merely on the ground that it rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement it appears that the deceased was in possession of the property in question as a tenant. Clause (2) of the hire purchase agreement is reproduced below: "(2) The hire purchaser shall hold the said property as tenant for the hire purchase period which is a fixed term of twenty years commencing from the 1st day of the month of July of the year one thousand nine hundred and seventy five and ending on the eighth day of the month of June of the year 1995 subject to the following conditions." Clause 3 of the agreement stipulated that the owner (U.P. Avas Avam Vikas Parishad) shall transfer the property to the hire purchaser by executing a conveyance deed with him in the prescribed form after the expiry of the hire purchase period. Cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us was that of a tenant till such time the property is transferred in his name. So far as the unpaid instalments are concerned it may be mentioned here that section 44 of the Act deals with provisions for debts and incumbrances to be allowed in determining chargeable value of estate. Section 44 of the Act reads as follows: "44. Reasonable funeral expenses and, with some exceptions, debts and incumbrances to be allowed for in determining chargeable value of estate.-In determining the value of an estate for the purpose of estate duty, allowance shall be made for funeral expenses (not exceeding rupees one thousand) and for debts and incumbrances; but an allowance shall not be made- (a) for debts incurred by the deceased, or incumbrances cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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