CONTROLLER OF ESTATE DUTY MADRAS Vs. PARVATHIAMMAL

JUDGEMENT

(1.) This appeal by the Controller of Estate Duty on certificate is against the judgment of the Madras High Court whereby that court answered the following question referred to it under Section 64 (1) of the Estate Duty Act, 1953 (Act 34 of 1953) (hereinafter referred to as the Act) partly in favour of the assessee and partly in favour of the revenue.

(2.) The matter arises out of the estate duty case of Shri R. Venkateswara Iyer who died on April 6, 1957. The respondent, Smt. Parvathi Ammal who is the widow of the deceased and is an accountable person in the case, filed statement relating to the estate of the deceased before the Assistant Controller of Estate Duty. The Assistant Controller determined the principal value of the estate to be Rs. 2,50,374/-. In computing the principal value the Assistant Controller took into account a sum of Rs. 1,50,000 on account of the value of property Known as "Mayavaram Lodge."

(3.) The Assistant Controller found that till March 11, 1955 the deceased, who was a self-made man, owned two buildings, including Mayavaram Lodge, besides some agricultural land. The deceased was carrying on the business of boarding and lodging in Mayavaram Lodge. He had also a small chit business. On March 11, 1955 the deceased executed a document described as a partition deed, whereby he gave "Mayavaram Lodge" to his five sons in equal shares and retained for himself the other house and agricultural land. On June 25, 1955 the deceased entered into an agreement with his sons by which they leased to the deceased Mayavaram Lodge wherein as before he continued to carry On his boarding and lodging business. in the profit and loss account a sum of Rs. 15,000 was mentioned for payment of rent of Mayavaram Lodge. Later on the deceased gave the boarding house on sub-lease to a third party.