CONTROLLER OF ESTATE DUTY GUJARAT I AHMEDABAD Vs. M A MERCHANT ACCOUNTABLE PERSON OF LATE SHRI A G MERCHANT MAJIRAJWADI ROAD BHAVNAGAR

JUDGEMENT

(1.) The facts in these appeals he within a narrow compass. One Abdulhussein Gulamhussein Merchant died on 8 February, 1959. The accountable persons filed returns under the provisions of the Estate Duty Act, 1953 and an assessment was made by the Deputy Controller of Estate Duty on 26 February, 1960. The Estate Duty (Amendment) Act, 1958, repealed the original sections 56 to 65. Section 59, which substituted for the original S. 62, made provision for reassessment. It came into force with effect from I July 1960. On 21 February, 1962 a notice under the new S. 59 of the Act was issued to the accountable person concerned for reopening the assessment on the ground that some property had escaped the levy of estate duty. The accountable persons raised objections to the reopening of the assessment under S. 59. The Assistant Controller rejected the contentions of the accountable persons and reopened the assessment. Against the order of reassessment the accountable persons filed three different appeals before the Appellate Controller. The Appellate Controller allowed the appeals and set aside the reassessment orders holding that S. 59 under which action had been taken by the Assistant Controller was not retrospective in operation. On appeal by the Revenue, the Tribunal upheld the view of the Appellate Controller relying on the decision of the Bombay High Court in A. N. Mafatlal v. Dy. Controller of Estate Duty, (1968) 67 ITR 449. Thereafter three references were made to the High Court at the instance of the Revenue raising the identical question :

(2.) The provisions of section 59 introduced by the Amendment Act of 1958 are as follows:

(3.) The High Court considered the question of law referred to it at great length and after a detailed judgment answered the question in each case in favour of the assessee.