CONTROLLER OF ESTATE DUTY Vs. GWALRE R S

JUDGEMENT

(1.) THIS is a reference made under Section 64(1) of the E.D. Act, 1953, at the instance of the Controller of Estate Duty. The question of law referred is as follows :

(2.) THE reference relates to the assessment of estate duty on the estate passing on the death of Pannalal Gwalre, who died on 10th July, 1966. THE deceased at the time of his death was a member of an HUF. THE net principal value of the estate of the deceased was determined at Rs. 6,12,722 under Section 58(3) of the Act by the Asst. Controller. While making the said assessment the Asst. Controller included a sum of Rs. 33,332 representing the value of 4/6ths share of the lineal descendants of the deceased in the residential house of the HUF. THE Appellate Controller, on appeal by the accountable person, held that on a reading of Section 33(1)(n) read with Section 39(3) of the Act, the entire amount of Rs. 33,332 added by the Asst. Controller was exempted from estate duty. In this view of the matter, the Appellate Controller deleted the said addition. THE same view was taken in appeal by the Appellate Tribunal.

(3.) PART V which consists of Sections 36 to 43 provides for the mode of computation of principal value. Section 39, which is relevant for our purposes, is as under :