PADMAVATHY RAMACHANDRAN Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE question referred to us at the instance of the assessee is as to whether the Tribunal was right in law in its interpretation of the meaning of the term 'issue' in Section 27 of the ED Act, 1953.

(2.) THE matter concerns the estate of one A.P. Ramachandra, who died on 23rd May, 1960. A month prior to his demise, he had sold certain agricultural lands, to the sons of his brothers, such sale having been effected on 18th April, 1960. While making the assessment to the estate duty, the Asstt. Controller proposed to treat the sales as gifts by invoking Section 27(1) of the Act and regarding the brother's sons of the deceased as relatives for the purposes of that section. To that proposal, a note was submitted by the authorised representative of the accountable person in which it was pointed, out that brother's sons were not relatives for the purpose of Section 27 of the Act, as that section defines 'relative' in Sub -section (7) and the definition therein does not include the brother's sons. Thereafter, the Asstt. Controller dropped his proposal to treat the sales as gifts. His successor, however, chose to record a contrary opinion relying on the definition of 'relative' in a Law Lexicon. Despite the objection made by the accountable person to that proposal, a revised assessment was made. The accountable person appealed against that revised assessment. The Appellate Controller having allowed that appeal, the Revenue carried the matter in further appeal to the Tribunal, which affirmed the view of the Appellate Controller.

(3.) FOR the purpose of ascertaining relatives of the deceased, the relevant provision to be looked into is Section 27(7) of the Act, and not any dictionary or Law Lexicon:'The definition of 'relative' contained in Sub -section (7) limits the persons, disposition in favour of whom may be treated as gifts under Section 27(1) of the Act. It is evident that if a person is not a 'relative' for the purpose of that section, the disposition made in his favour will hot attract Section 27 of the Act.