9911796707
TMI Blog2002 (8) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 13-8-2002 - Judge(s) : R. JAYASIMHA BABU., K. P. SIVASUBRAMANIAM. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The questions referred to us arise out of the order of the Tribunal in an appeal under the Estate Duty Act, 1953. The duty was levied on the accountable person in respect of the estate of the late Smt. Jayalakshmi who died on December 21, 1976. She had during her lifetime acquired in terms of a settlement deed executed by her father on April 8, 1929, and a release deed executed by him in April, 1937, the right to collect for herself the rents and income from the property bearing 84, Purasawalkam High Road, Kilpauk, Madras. The right given to the assessee was described in the release de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed to the children of the deceased on the demise of Smt. Jayalakshmi, as in terms of the settlement, she had only a right to receive income from the property and the right to enjoy the property after her lifetime had already been given to her children under the terms of the settlement deed itself. Section 7 of the Act deems that property in which the deceased or any other person had any interest and which interest ceases on the death of the deceased, to pass, on the deceased's death, to the extent to which a benefit accrues or arises by the cesser of such interest. In this case, the right to enjoy the income of the property was a right which the children of the deceased did not have during the lifetime of the mother. That right is a b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at since the deceased had herself lived in the property, there was no actual income and in the absence of such income, the mode of valuation set out in section 40 of the Act would be wholly inapplicable. Counsel in this context invited our attention to certain rulings, none of which is of any assistance to him, as they did not deal with a situation similar to the one with which we are concerned in this case. Section 40 of the Act reads thus: "Valuation of benefits from interests ceasing on death.--The value of the benefit accruing or arising from the cessor of an interest ceasing on the death of the deceased shall- (a) if the interest extended to the whole income of the property, be the principal value of that property; and (b) if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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