SASTHA N Vs. CONTROLLER OF ESTATE DUTY ASST

JUDGEMENT

(1.) The petitioners herein are the legal representatives of one late S. Nelliappan of Nagercoil. The petitioners, as accountable persons, filed a retirn under the E.D. Act on the basis that Nelliappan was the karta of an HUF and as such his share alone in the HUF passed on his death. The Asst, Controller, accepting the assertion of the accountable persons that the deceased was a member of a joint family at the time of his death and, therefor, his 1/6th share alone in the joint family passed on his death, proceeded to determine the principal value of the 1/6th sharee of the deceased in the joint family at Rs. 5,27,069 by his order dated 29th November, 1971. As regards the valuation of some of the tiems of the properties, the accountable persons field an appeal before the controller. The controller partly allowed the appeal. As aganist the order of the controller, both the Revenue as well as accountable persons field appeals before the Tribunal. The Tribunal allowed the appeal field by the accountable persons but dismissed the appeal field by the Revenue.

(2.) Aggrieved by the order of the Tribunal, the Revenue has sought a reeferance to this court on the question of valuation of some of the items of the properties and the said referance is pending considerat ion before this court.

(3.) In the meanwhile, the Asst. Controller initiated proceedings u/s. s. 61 of the E.D. Act for rectification of certain alleged mistakes in the original order of assessment and after getting the objections of the accountable persons as contemplated by the proviso to s. 61, he enhanced the principle value of the estate to Rs. 22,01,384 and determined the additional estate duty payable by the accountable persons at Rs, 4,48,403 while the amount payable as estate duty in the original assessment order was only Rs. 37,827. Against the order enhancing the principle value of the estate of the deceased from Rs. 5,27,069 to Rs. 22,01,384, the accountable persons have preferred an appeal to the Controller u/s. 62 of the E.D Act. Pending the said appeal the petitioners herein (accountable persons) field an application for stay of collection of the estate duty before the Asst. CED. The Asst. Controller, by his order dated June 18, 1977, refused to grant stay of the collection of the estate duty on the enhanced principle value practically on two grounds : (1) that since the appeal field by the accountable persons before the Controller appears to be not maintainable, the collection of estate duty cannot be stayed any further; (2) that since the Dy. Controller and the Controller have refused the petitioners ' request for stay of collection of estate duty, the demand for payment of estate duty has to be enforced. It is under those circumstances, the petitioners have come before this court seeking to quash the order of the Asst. Controller, dated June 18, 1977, refusing to grant stay of the collection of the estate duty.