VITHAL DAS Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE Central Board of Direct Taxes had made this reference under Section 64(1) of ihe Estate Duty Act, 1953, at the instance of Sri Vithal Das, the accountable person. It has referred the following questions for the opinion of this court :

(2.) THIS reference arises out of proceedings in connection with the estate duty assessment in respect of the estate of late L. Kedar Nath, who died on the 8th of September 1955. Sri Vithal Das, the eldest son of the deceased, filed the estate duty return in respect of the properties left by Kedar Nath, as accountable person under the Act. He showed the value of the estate left by the deceased as Rs. 1,57,764. The Assistant Controller ot Estate Duty, however, computed the value of the estate as Rs. 3,09,972 and levied the estate duty accordingly.

(3.) THE accountable person preferred an appeal to the Board against the order of the Assistant Controller of Estate Duty, inter alia, on the ground that the Assistant Controller was not justified in including the entire value of the property standing in the name of the deceased and the sum of Rs. 80,000 in the estate of the deceased. THE Board found that although the partition in the family had taken place as far back as the year 1936 without any share being allotted to the wife, the lady neither contested the partition nor claimed any share in the property. In these circumstances, it could be presumed that she relinquished her interest in the coparcenary property in favour of her husband and sons. It held that the deceased was the owner of the entire property which he received as a result of family partition, and the whole of it passed on his death. Entire value of those properties was, therefore, rightly included in the value of the estate of the deceased passing on his death liable for payment of estate duty.