CONTROLLER OF ESTATE DUTY Vs. SANTRAM

JUDGEMENT

(1.) THIS is a reference made by the Appellate Tribunal under Section 64(1) of the E.D. Act, 1953, referring for our answer the following question of law :

(2.) THE dispute relates to the assessment of estate duty on the estate of Brijlal who died on 12th July, 1967. THE accountable person is Santram, one of the sons of the deceased. In determining the total value of the estate, an amount of Rs. 1,27,053, representing the value of the interest in the joint family property of all the lineal descendants of the deceased, was added under Section 34(1)(c) of the Act by the Assistant Controller of Estate Duty. THE Appellate Controller maintained the addition subject to some relief in regard to the valuation of certain assets. In second appeal filed before the Tribunal, it was held that Section 34(1)(c) could not enable the addition made by the Asst. Controller as that section was held to be ultra vires by the Madras High Court in V. Devaki Ammal v. Asst. CED [1973] 91 ITR 24 (Mad). THE Tribunal was of the view that as the Madras decision was the only decision on the point, it was bound to follow the same and to hold that the addition made by the Asst. Controller was bad.