CONTROLLER OF ESTATE DUTY Vs. MOHINDER SINGH

JUDGEMENT

(1.) THE Revenue filed an application (R. A. No. 225 ASR of 1979), before the Income-tax Appellate Tribunal, Amritsar (hereinafter referred to as "the Tribunal"), requiring the Tribunal to draw up a statement of the case and refer the following two questions of law arising from the Tribunal's order dated August 29, 1979, in E. D. A. Nos. 8 and 11 (ASR) of 1978-79, to this court for its opinion :

(2.) WHETHER, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the value of the deemed gift amounting to Rs. 1,78,997 was not includible in the estate of the deceased and as such not liable to duty ?"

(3.) IT is very clear that the provisions of Section 9 and Explanation 2 to Section 2(15) of the Estate Duty Act, 1953, do not talk of any deemed gift. The provisions of the Gift-tax Act cannot be availed of for the purpose of the Estate Duty Act. That being so, it cannot be said as to under which provision the deemed gift is to be valued. Moreover, Explanation 2 to Section 2(15) of the Estate Duty Act, 1953, also does not talk of a mixed transaction of sale and deemed gift. This provision is attracted only in the cases of transactions in which the rights of the deceased were extinguished. The present case relates to a sale transaction and the deemed gift on account of the difference of the value cannot be bifurcated from the transaction of sale. There is no provision in the Estate Duty Act, 1953, in regard to a deemed gift. This being the position, we find that the Tribunal was justified in law in holding that the provisions of Section 9 read with Explanation 2 to Clause (15) of Section 2 of the Estate Duty Act, 1953, were not attracted in the present case. The reference is answered accordingly.