S N PARTHASARTHY Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) At the instance of the accountable person, the Income-Tax Appellate Tribunal (hereinafter referred to as ' the Tribunal') has referred under Sec. 64 (1) of the Estate Duty Acl, 1953 (hereinafter referred to as 'the Act') the following question of law : "Whether, on the facts and in the circumstances of the case, the accountable person was entitled to a deduction under s.50 of the Estate Duty Act of the full amount of Rs. 16,348-75 in the computation of the estate duty payable?"

(2.) The material facts for deciding the above question are briefly these : Sri R.Srinivasa Narasimhachary, his wife and their two sons constituted a Hindu undivided family governed by Mitakshara Law. After his death his sons applied to the Civil Court for the grant of a succession certificate in respect of certain debts due to the family and certain shares and securities which belonged to the family. A sum of Rs. 16,348-75 was paid as court fee for obtaining such succession certificate. The estate which passed on to the accountable person on such death was assessed to estate duty by the Assistant Controller of Estate Duty. Under s. 50 of the Act, the accountable person thereafter made an application before the Assistant Controller claiming deduction of the amount of Rs. 16,348-75 from the amount of estate duty assessed. The claim was partly allowed and the accountable person was allowed a deduction of only Rs. 6,539-50. The ground on which only a part of the court fee paid was allowed as deduction, was that the succession certificate obtained was in respect of the entire interest of the joint family in such debts, shares and securities and not in respect of only the interest of the deceased which wa.s to the extent of 4/10 therein which alone passed to his heirs on his death and was liable to estate duty. The accountable person's appeal to the Appellate Controller of Estate Duty and the further appeal to the Tribunal were unsuccessful.

(3.) In order to answer the question referred to us, it is necessary to set out the relevant provisions of the Act.