CONTROLLER OF ESTATE DUTY Vs. KAMLA WATI

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal. Amritsar, has referred the following questions of law said to arise out of its order dated 22nd April, 1977 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the deceased did not have the right to receive compensation at the time of his death as he was the owner of the land on the date of the death ?

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the compensation was not includible in the estate of the deceased ?" 2. In order to decide the aforesaid questions, it is necessary to notice certain salient features: One Bhagat Ram Bahri died on 12th January, 1972. The deceased was the owner of agricultural land measuring 22 kanals 2 marla situate at Jullundur, which was acquired by the Collector, Jullundur, on 8th January, 1974. Shrimati Kamla Wati, after the death of Bhagat Ram Bahri, filed the accounts of his estate as an accountable person. In the return the value of the acquired land was shown at Rs. 80,000. On 22nd February, 1973, a revised return was filed showing the value of the land as "nil", on the ground that the land had been acquired by the State Govt. and the compensation payable thereon was announced by the State Govt. after the death of the deceased and as such no estate duty was leviable thereon. The Asst. Collector did not accept this plea. He took the view that the land had been acquired on 21st May, 1968, when notification under Section 4 (1) of the Land Acquisition Act, 1894, was issued, and as such the amount of compensation was liable to be added in the estate of the deceased. Consequently, a sum of Rs. 1,33,214 was added in the estate of the deceased.

(3.) IN the appeal filed by Shrimati Kamla Wati, the Appellate Controller upheld the order of the Asst. Controller.