COLLECTOR OF ESTATE DUTY Vs. C B PRASAD

JUDGEMENT

(1.) In the instant case the High Court followed its earlier decision in the case of V. Devaki Ammal v. CED in which it had been held that Section 34 (1) (c) of the Estate Duty Act, 1953 was ultra vires. Following the said decision, the question of law referred by the Tribunal in the instant case was answered in favour of the assessee.

(2.) The decision of the High Court in V. Devaki Ammal case came up in appeal and in the judgment reported as CED v. Devaki Ammal the view of the High Court was reversed and it was held that Section 34 (1) (c) of the Act was valid. This being so, the decision of the High Court in the present case has to be set aside and as the High Court did not go into the merits of the question, we remand the case to the High Court for deciding the case afresh in accordance with law. There will be no order as to costs.