CONTROLLER OF ESTATE DUTY Vs. LAHIRI S K

JUDGEMENT

(1.) PURSUANT to the order of this court requiring the Appellate Tribunal to state the case, referring two questions of law to this court for its opinion, under Section 64 of the Estate Duty Act, 1953, the following questions have been referred to this court :

(2.) THE facts of the case, not in dispute, are that Sri K.C. Lahiri expired on July 1, 1960. THE accountable person under the Act, namely, Sri Sudhir Kumar Lahiri, the respondent herein, after expiry of the statutory period prescribed for the purpose, submitted to the Controller of Estate Duty an account of the properties in respect of which the estate duty was paid, as required by Section 53 of the Act. It is also not in dispute that the accountable person had applied for extension of time for filing the return, which was allowed by the Controller. THE return was filed on November 30, 1967, whereas the same should have been filed within six months of the death of the deceased, which took place on July 1, 1960. THE assessment was completed by the Assistant Controller of Estate Duty on March 11, 1977, on which date he also issued a notice under Section 60(2) of the Act for late filing of the return. By order dated July 9, 1977, the Assistant Controller modified his order under Section 61 of the Act finding that though on the application of the accountable person extension of time was allowed for filing the return, no interest had been charged under Section 53(3) of the Act. It is also not in dispute that a notice was issued to the accountable person as to why the order be not rectified and interest be not imposed for late filing of the return, to which the assessee objected. Since the Assistant Controller was satisfied that the failure to charge interest, as mandatorily required by the Act, justified exercise of the power under Section 61 of the Act, and as the mistake was apparent from the record, he passed an order rectifying the earlier order and charged interest for late filing of the return.

(3.) ON behalf of the accountable person (respondent) none appeared to contest the matter.