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TMI Blog1987 (1) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, Cochin Bench : "(1) Whether, on the facts and in the circumstances of the case, the liability of the deceased due to the firm, M/s. New Guna Shenoy Co., is liable to be abated under section 46(1)(b) of the Estate Duty Act, 1953 ? (2) Whether, on the facts and in the circumstances of the case, only that portion of the liability of Rs. 1,57,431 which bears the same ratio as the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share of the capital the said sum of Rs. 2,55,256. The new firm subsequently gave a loan to A. N. Lakshmana Shenoy in the sum of Rs. 1,57,641. Upon the death of A. N. Lakshmana Shenoy, the question arose, in computing the value of the estate, whether the accountable persons were entitled to claim deduction representing the said loan of Rs. 1,57,641. The Tribunal applying the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose that the Tribunal directed in paragraph 17 of the order (annexure F) in the following words : ".............. it is not as if that the entirety of the resources of the firm were made up of only the property derived from the deceased. If that were the case, the entirety of the loan may require to be abated. But where the resources of the person furnishing the consideration for the debt is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat if the net value of the resources of the firm is taken as X, the portion of the liability to be abated is to be taken as Rs. 2,55,256/X x Rs. 1,57,641. We direct accordingly." This direction was, in our view, warranted by the proviso to section 46(1). See the decision of the Madras High Court in CED v. Smt. S. T. B. Ameen Khaleeli [1983] 143 ITR 679. See also the principle stated in Mc Douga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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