MUTHIAH M M Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a combined reference both at the instance of the accountable person and at the instance of the Department arising out of the order of the Tribunal in E.D.A. No. 133/Mds of 1972-73 dated August 31, 1978, under the provisions of the Estate Duty Act, 1953 (hereinafter referred to as the "Act"). The following questions of law have been referred to us :

(2.) WHETHER on the facts and circumstances of the case in respect of the policy amount of Rs. 1,21,728 received under policy No. 83428875, sections 7 and 14 of the Estate Duty Act would apply in accordance with the proportion of 23100/109725 and 46200/86625 respectively ?

(3.) WITH reference to the inclusion of the amounts covered under the various policies of insured, the Tribunal found a sum of Rs. 1,78,218 was included in the estate by the Assistant Controller and the Appellate Controller deleted the entire sum. The Tribunal considered the inclusion of the policy amounts with reference to each policy separately. In so far as the policy No. 86048096 for a sum of Rs. 7,014 and the policy No. 341216 relating to a sum of Rs. 38,002 were concerned, the Tribunal recorded the finding that the policies were assigned in favour of certain assignees and represented the assets of the assignees. The Tribunal also recorded a finding that the entire premia for both the policies were paid by the Hindu undivided family and the provisions of section 14 of the Act were not attracted to the case. The Tribunal therefore came to the conclusion that the assets belonged to the assignee and could not be regarded as the property of the Hindu undivided family which paid the premia.