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TMI Blog1977 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... to go into the merits of this petition since it is said that reassessment proceedings under section 59 of the Estate Duty Act has been commenced. Accordingly, this petition is dismissed. No costs. The sum of Rs. 5,030 deposited as condition for stay pending the dismissal of this petition may be appropriated towards the estate duty that may be found payable. The petitioners agree to this course." It is stated that there was an application for review (R. P. No. 52 of 1974) of the judgment at the instance of the revenue and that the same was dismissed on the ground that against the dismissal of the writ petition the revenue cannot possibly have any grievance. Neither a copy of the petition for review nor a copy of the order has been exhibited to ascertain the nature of the order and the grounds for review. The Controller issued exhibit P-3 notice dated May 29, 1973, proposing to reassess the estate on the ground that the property chargeable to estate duty had escaped assessment or been under-assessed or been assessed at too low a rate. The petitioner was called upon to submit an account of all the property in respect of which estate duty was payable. By exhibit P-4, the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty is payable : Provided that the Controller may extend the period of six months aforesaid on such terms which may include payment of interest as may be prescribed ...... (5) Where two or more persons are accountable, whether in the same capacity or in different capacities, for estate duty in respect of any property passing on the death of the deceased, they shall be liable jointly and severally for the whole of the estate duty on the property so passing. " Counsel stressed that while under section 53(3) the account is in respect of " all the properties in respect of which estate duty is payable ", under sub-section (5) which provides for liability to estate duty, the same is only in respect of " the property passing on death ", and only on " the property so passing ". This, it was said, can only be the share devolving individually on the heirs on the death of the deceased. Attention was also called to section 53(1)(a) of the Act, under which any legal representative to whom the property of the deceased passes, is made accountable for the whole of the estate duty on the property, but his liability is restricted only to the assets of the deceased which he received or might ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at High Court (Bhagwati C.J. and Divan J.) noticed the definition of " legal representative " in section 2(12) of the Act ; the charging section, section 5, the liability for estate duty laid on every legal representative under section 53, sub-section (1), of the Act ; and the provision in section 53(5) declaring the joint and several liability of two or more accountable persons. It was explained that, while the liability of every accountable person is a personal liability, it is limited in extent to the assets of the deceased ; it was a personal liability and not a liability payable out of the assets of the deceased. Apart from the above decision, counsel for the revenue cited a direct decision of the Allahabad High Court in Vijay Kumar Kedia v. Controller of Estate Duty [1976] 104 ITR 302, where it was pointed out that the liability of legal representatives of a deceased person under the Estate Duty Act is materially different from that under the Indian Income-tax Act. Under the latter Act, a notice to file a return cannot be given to one only of the legal representatives ; but under the Estate Duty Act, section 53 enjoins each and every person on whom any interest in the propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it, and that this is possible despite their holding the estate in different parcels. In the light of the principle of the above decisions, it is not possible for us to hold that the proceedings initiated against the petitioner and sought to be continued against him are wholly without jurisdiction or invalid. We would not be justified in declaring so at this stage or in these proceedings. Section 73, sub-section (5), of the Estate Duty Act, attracts the provisions of sections 46 and 47 of the Indian Income-tax Act, 1922. The section is as follows : " 73. Notice of demand and recovery of duty, penalty, etc.--...... (5) The provisions of sub-sections (1), (1A), (2), (3), (4), (5), (5A), (6) and (7) of section 46 and section 47 of the Indian Income-tax Act, 1922 (11 of 1922), shall apply as if the said provisions were provisions of this Act and referred to estate duty (including estate duty provisionally assessed) and sums imposed by way of penalty or interest under this Act instead of to income-tax and sums imposed by way of penalty or interest under that Act and to Controller of Estate Duty instead of to Income-tax Officer." Section 46 of the Indian Income-tax Act having b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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