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TMI Blog1982 (7) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... 97,960. The Assistant Controller found that there was a deficit in the principal value of the free estate because the liabilities were Rs. 64,04,110 as against the free estate of Rs. 33,33,080. He, however, found that the value of the total gifts under s. 9 and the gifts to the accountable person including insurance amounts paid for the policies taken, under the Married Women's Property Act, within one year from the date of death came to Rs. 7,37,874. He computed the estate duty on this amount of Rs. 7,37,874. This assessment has been upheld by the Appellate Controller as well as by the Tribunal having regard to the provisions of s. 44 of the E.D. Act, except that the value of the properties passing on other titles was computed at Rs. 6,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property liable thereto ......" Clauses (a), (b), (c) and (d), which we have not reproduced, refer to the allowances which shall not be made for determining the value of an estate for the purpose of determining the estate duty. We are not concerned with any one of these. We are concerned with the meaning to be given to the word thereto used in s. 44. The argument appears to be that the word thereto has reference to the estate liable to estate duty. Now, it is clear that if any deductions have to be made for the purpose of determining the value of an estate for the purpose of estate duty, such deductions will have to be permissible only under s. 44 of the E.D. Act. If a deduction is not permissible under the provisions of s. 44, then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... os by a deceased is no doubt treated as property passing on the death of the deceased by a deeming fiction created by the statute, but property absolutely gifted to the donee and thus belonging to him cannot be property against which debts or incumbrances can be enforced unless there is a charge created on such property. No such charge is created in the instant case. The estate of the value of Rs. 6,18,052 is the property against which the creditors of the deceased cannot proceed because the property did not belong to the deceased at the time of his death. Having regard to the specific provisions in s. 44, no error can be found in the view taken by the authorities under the E.D. Act and the Tribunal that the deficit outstanding liabilities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deceased and his debts and incumbrances, within the meaning of the Finance Act, 1894, a contention similar to the one advanced before us. This contention was rejected by Lawrence J. with the following observations (2 EDC 652 at 656): " I think the words of the section contemplate liabilities of the estate which are met out of the estate, and I think that the last three lines of s. 7, sub-s. 1, in their natural meaning are inconsistent with the appellant's case. I do not see how, in determining the value of an estate, allowance can be made for debts beyond the value of the assets out of which the debts are to be met. It is an unnatural use of words, in my view, to speak of making an allowance for a minus quantity in determining value." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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