9911796707
TMI Blog1993 (8) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... transferring the monthly interest payable on those fixed deposits then and there and to adjust the rest of the liability of estate duty from the principal amounts on the respective dates of maturity of those fixed deposits. The petitioner, it is said, has also requested by letter dated April 25, 1978, for time till July 31, 1978, to pay the provisional demand. A draft for Rs. 30,000 was stated to have been sent by the petitioner on August 2, 1978. Thereafter, a show-cause notice had been issued on August 18, 1978, to the petitioner requesting him to pay the duty by getting loan on fixed deposit. The petitioner pleading inability, however, was stated to have sent a draft for Rs. 25,000 on September 14, 1978. Thereafter, he, along with his chartered accountant, was stated to have appeared on November 1, 1978, and requested time for payment till December 25, 1978. The condition to grant time till December 25, 1978, was subject to payment of interest at six per cent., from the original due date till date of last payment. This was communicated in writing by letter dated November 17, 1978, to the petitioner. The petitioner failed to adhere to the due date December 25, 1978. A show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpretation that imposition of interest on estate duty leviable is permissible at any stage-either provisional or final-inasmuch as there are no words or phraseologies employed therein restricting imposition or charging of interest on such duty leviable. Arguments-in-opposition of either counsel, as penned above, may now fall for consideration and discussion. In order to appreciate the question raised, it is better, I think, to refer to the provisions of sections 57, 58 and section 70. Section 57 deals with power to make provisional assessment in advance of regular assessment and it runs as under : "57. (1) Estate duty shall be due from the date of the death of the deceased, and the Controller may, at any time after the receipt of the account delivered under section 53 or section 56, proceed to make in a summary manner a provisional assessment of the estate duty payable by the person delivering the account on the basis of the account so delivered. (2) Upon a provisional assessment being made under sub-section (1), the person so assessed shall pay to the Controller, or furnish security to the satisfaction of the Controller for the payment of the estate duty, if any, payable o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisional assessment the assessee has to pay to the Controller, or furnish security to his satisfaction, for the payment of the estate duty, in accordance with the provisional assessment and the Controller thereupon is to grant him a certificate that such duty has been or will be paid or that none is due, as the case may be, in respect of the property mentioned in the certificate. No appeal has been provided against the order of provisional assessment and the amount paid in pursuance of the provisional assessment is to be deemed to have been paid towards the regular assessment as and when made under section 58. Section 70, which contemplates imposition of interest, where the Controller allows postponement of payment on terms, reads as under: "70. (1) Where the Controller is satisfied that the estate duty leviable in respect of any property cannot, without excessive sacrifice, be raised at once, he may allow payment to be postponed for such period, to such extent, and on payment of such interest not exceeding four per cent., or any higher interest yielded by the property, and on such other terms as he may think fit. (2) Notwithstanding anything contained in sub-section (1), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable on such assessment becomes immediately due. The amount so assessed, if paid, is given credit at the time of final assessment to be made. No appeal on such provisional assessment shall be allowed obviously on account of the fact that such assessment is made only on the basis of the acceptance of the account so delivered. The estate duty leviable in respect of "any property" may also be postponed, if the Controller is satisfied that such a duty cannot be raised at once, without any excessive sacrifice. If the payment is postponed, levy of interest on such payment is permissible at the specified rates, taking into account the contingency of the situation of the case. In the case of estate duty leviable in respect of "immovable property", an option is given to pay the amount either in four equal yearly instalments or eight equal half-yearly instalments with interest as applicable to "any property". Thus, the estate duty leviable is recoverable at any stage, either provisional or final, inasmuch as there are no express or explicit fetters on the collection of such duty and recovery may be effected in the manner indicated by the sanguine provisions adumbrated under section 73." I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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