COMMISSIONER OF INCOME-TAX Vs. KAHAN PAL

JUDGEMENT

(1.) THE following question of law has been referred by the Income-tax Appellate Tribunal (for short, "the Tribunal") to this court for opinion under Section 64 (1) of the Estate Duty Act, 1953 (for short, "the Act") :

(2.) ONE Chog Singh had died on February 18, 1969. Consequent upon a survey conducted by the Inspector of the Department, proceedings under the Act were initiated by the Assistant Controller of Estate Duty for levy of estate duty on the chargeable estate of the deceased. a notice by registered post A. D. was, therefore, issued on October 17, 1973, by the Assistant Controller of Estate Duty to the accountable persons, Rajpal Singh and Chachpal Singh, sons of the deceased, at their address, Village Dhani, Tehsil Loharu, District Bhiwani. Since none appeared, notices were again issued under Rule 24 of the Estate Duty Rules, 1953, on July 19, 1975, for producing the books of account or the documents relating to the chargeable estate of the deceased, Chog Singh. Notices were thereafter again issued on July 19/20, 1977. Kahan Pal Singh, an accountable person, attended. Thereafter, another accountable person, Rajpal Singh, also appeared. Proceedings were, however, finalized ex parte by the Assistant Controller because the accountable persons failed to appear on the adjourned date of hearing. The principal value of the chargeable estate of the deceased was determined at Rs. 1,18,000.

(3.) IN the present reference, the Department is represented by Shri R. P. Sawhney, learned senior counsel for the petitioner, but no one has put in appearance on behalf of the accountable person, Kahan Pal, Village Dhani, District Bhiwani. Notice had been issued to him by registered post A. D. Shri Sawhney has argued that the Tribunal has not taken a correct view regarding the period of limitation as laid down in Section 73a of the Act. Under the said section, proceedings for the levy of estate duty are required to be commenced before the expiration of five years from the date of death of the deceased. Since Chog Singh had expired on February 18, 1969, and notice under Section 59 of the Act had been issued on October 17, 1973, the period of five years is said to have not expired.