MAMIE BHAGWANDAS AHUJA Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference under Section 64 (1) of the Estate Duty Act, 1953, (hereinafter called the Act), at the Instance of the accountable person. Miss Mamie Ahuja. The question, which the Appellate Tribunal (Central Board of Direct Taxes, New Delhi) has referred to this Court for decision, is--

(2.) THE material facts are that Shri Bhagwandas Ahuja, father of the accountable person Miss Mamie Ahuja, died on 6th January 1954. THE assets of the deceased consisted, amongst others, of ten shares in Motors (India) Ltd-(hereinafter referred to as the Company) of the face value of Rs. 10,000/- each. THE subscribed and paid up capital of the company, which was originally Rupees 1,50,000/- divided into fifteen shares of Rs. 10,000/- each, was subsequently increased to Rs. 3,00,000/-, by a further issue of fifteen shares of Rs. 10,000/-each. Bhagwandas used to get Rupees 12,000/- per annum as salary from the company. He did not receive any dividend in respect of the shares held by him; but as Managing Director of the company drew substantial sums by way of salary, entertainment and conveyance allowances, which in the last three accounting years before his death, aggregated to Rupees 60,000/-. THE shares of the company were not quoted on the Stock Exchange.

(3.) THE accountable person then preferred an appeal before the Appellate Tribunal reiterating her contention in regard to the exclusion of the value of the shares from Rs. 1,14,256/-, the proportion of the company's assets chargeable under Section 17 of the Act. THE appellate Tribunal also negatived the contention observing:--