9911796707
TMI Blog1996 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... rvaluation of the properties included in the account or of omission to include therein any property which ought to have been included or of assessment at too low a rate or otherwise ? 2. Whether the deduction allowed in the original assessment was not a deductible liability at the time of the death of the deceased and if so, whether the reopening of the original assessment was valid in law ? " In other words, we are required to consider whether the proceedings could be understood to have been legally and properly initiated under section 59 of the Estate Duty Act. We have also considered whether if when the original assessment was made, the deduction was allowed which in fact was not a deductible liability at the time of the death of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. " On the basis thereof, this amount of Rs. 1,43,927 was added to the principal assessed value of Rs. 5,26,178 adding to the total principal value amounting to Rs. 6,70,105. The first appellate authority by the order dated March 25, 1985 (annexure "C"), observed that it was in the subsequent appellate order in the case of the father of the deceased, the liability was reduced. It is further observed that the principal value of the estate passing on the death has to be computed after allowing only the real liabilities, and once the real liability is found less than what was allowed, the correct liability has to be allowed. It is further observed that the liability having been allowed unconditionally at the time of original assessment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of undervaluation of the property included in the account or of omission to include therein any property which ought to have been included, or of assessment at too low a rate or otherwise,....... " As stated above, when the Controller is faced with a situation in consequence of any information in his possession creating a foundation of reason to believe then he has to proceed further by taking action under the said provision. The above provision, conveys the sphere of reason to believe. The Controller must have reason to believe that there is an escapement of assessment. This escapement of assessment has to be with regard to any property chargeable to estate duty. It would be further seen that the provision qualifies illustrative situa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use of the statute itself. To illustrate the situation the provision of section 2(15) of the said Act together with the relevant Explanation 1 thereto needs reproduction and it is as follows : " 'property' includes any interest in property, movable or immovable, the proceeds of sale thereof and any money or investment for the time being representing the proceeds of sale and also includes any property converted from one species into another by any method. Explanation 1.--The creation by a person or with his consent of a debt or other right enforceable against him personally or against property which he was or might become competent to dispose of, or to charge or burden for his own benefit, shall be deemed to have been a disposition mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into escapement. Learned counsel emphasised that the first one is the assessment at too low a rate and the second one is the assessment being the subject of grant of excessive relief under the Act in the context of the situation. In our judgment, this travel is really unnecessary in view of the plain language of section 59(b) of the Estate Duty Act, 1953, with reference to the limited point urged with reference to the questions expected to be answered. Learned counsel also took us to the similar statutory provisions of section 17 of the Wealth-tax Act, 1957, as well as section 16 of the Gift-tax Act, 1958. For the same reasons, the above provisions relating to the escapement of assessment are of no help to change the straight literal mean ..... X X X X Extracts X X X X X X X X Extracts X X X X
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