CONTROLLER OF ESTATE DUTY Vs. COMILLA MOHAN

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Allahabad has referred the following question of law under the Estate Duty Act for opinion to this Court.

(2.) The respondent is an accountable person and filed return of estate duty under the Estate Duty Act. The deceased had a share in the property, belonging to the HUF of M/s H.N. Mohan & Sons (bigger HUF). The original assessment under the Estate Duty was completed on 20th April, 1974 on the estate valuing Rs. 31,87,565/-. However, on the objections being raised by the internal audit party of the department, the Estate Duty Officer found that the deduction to the extent of Rs. 3,75,000/- was wrongly allowed in computing deceased's share in the property belonging to the HUF of M/s N.M. Mohan, & Sons (bigger HUF). Proceedings under Section 59 (b) of the Act were initiated. The deduction of Rs. 3,75,000/- which was initially allowed, but was withdrawn subsequently in. the proceedings under Section 59 (b) of the Act, was in regard to the marriage, maintenance and education of girls. In the reassessment proceedings, the Estate Duty Officer enhanced the deceased's share in the Estate of M/s N.N. Mohan & Sons (bigger HUF) by Rs. 23,4377-. Similarly the value of assets of the lineal descendant for rate purposes was also increased by an amount of Rs. 46,874/-. In appeal the Appellate Controller of Estate Duty rejected the contention of the accountable person and held that no deduction could be allowed for any provision either for the marriage of the female members or for their maintenance from the value of the estate belonging to HUF of M/s N.N. Mohan & Sons. The said order has been set aside in further appeal by the Tribunal and it has been held that the deduction of Rs. 3,75,000/- being provision for marriage, maintenance and deduction of the female members of the family was allowable deduction in computing the value of the assets of the HUF of M/s N.N. Mohan & Sons for the purpose of determining the deceased's share and share of the lineal descendants.

(3.) Heard Sri Shambhu Chopra, learned Standing Counsel for the department and Sri Vikram Gulati, learned counsel for the accountable person.