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TMI Blog1983 (7) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Rs. 1 lakh to levy to estate duty and while doing so he placed his reliance on the case of CED v. A. T. Sahani [1970] 78 ITR 508 (Delhi). When the dispute came before the Controller (Appeals), he also confirmed the action of the Assistant Controller for the reasons given by him in his order. 2. While disputing this action of the Controller, the learned counsel for the accountable person, Mr. D.K. Gupta, submitted that payment of Rs. 1 lakh received on the death of Shri Lalit Bhatia had two important characters---first being that it was ex gratia payment, for which he read out the order as per which sum of Rs. 1 lakh was paid ; and secondly, that it was payable and paid to specified members of the deceased's family. Against the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to members of the family. According to him, it was property passing on death and, therefore, was rightly subjected to estate duty. He, however, could not controvert the fact that there are two views on the issue---the Delhi High Court decision in the case of A. T. Sahani supporting the revenue and the rest the subject. 4. After taking into consideration the rival submissions, we are unable to confirm the inclusion of Rs. 1 lakh because there is no dispute about the fact that the said sum was paid as per the Government order dated 26-6-1978 in the case of Shri Lalit Bhatia deceased, which reads as under: "Subject : Ex gratia payments to the families of personnel travelling by service aircraft on duty and dying as a result of accident t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The above orders will take effect from 1-11-1977. 5. This issues with the concurrence of the Ministry of Finance (Defence) vide their U.O. No. 108/S/Pen of 1968." From the above order, it is clear that it is an ex gratia payment. Ex gratia, as per Oxford Dictionary, means as an act of grace---whereas, as per the Shorter Oxford English Dictionary on Historical Principles, ex gratia means 'done or given as a favour specially implying the absence of any legal compulsion'. Besides the abovereferred payment was ex gratia, there is no controversy about the fact that it was payable to the specified members of the family surviving the deceased, as observed by the Controller in his order, as under : "Under this scheme, as modified from time to ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m time to time, unless such accident, loss or damage is attributable to his own negligence or breach of instructions. The payment of compensation was discretionary and was dependent on satisfaction of certain conditions, viz., that the loss of accident must not have occurred due to the negligence of the deceased, etc. Hence it could not be said that the deceased had any beneficial interest in the compensation amount during his lifetime which was capable of being disposed of by the deceased. The amount was payable to the legal heirs only after the death of the deceased. No doubt the employee had the right or power to nominate the person who could receive such compensation payable under rule 73, but such a right to nominate a person, who coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vespa Scooter is scarce and one even in worst condition would not be available for a petty sum of Rs. 1,000. What to talk of condition of the scooter, even model was not given. Maybe that Vespa Scooters are scarce but under the peculiar circumstances of this case, when head of the house was no more, widow even may not fetch that much (Rs. 1,000) for the scooter. Valuation of Rs. 1,000 is, therefore, ordered to be taken instead of Rs. 2,500 taken by the Assistant Controller and confirmed by the Controller. 7. Regarding the third contention, it is observed from the order of the Controller that deduction under section 33(1)(h) has already been allowed seeing from the assessment record. But in case it is not so, the Assistant Controller is di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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