CONTROLLER OF ESTATE DUTY Vs. DURGANAND JHA

JUDGEMENT

(1.) THE following five common questions of law are referred for the opinion of this court under Section 64(1) of the Estate Duty Act, 1953, by the Income-tax Appellate Tribunal, 'A' Bench, Patna, arising out of common order in R.A. No. 37/(Pat), R.A. No. 41/(Pat), R. A. No. 38/(Pat), R. A. No. 42/(Pat), R. A. No. 36/(Pat), R. A. No. 40/(Pat), R. A. No. 39/(Pat) and R. A. No. 43/(Pat) of 1977-78 dated January 29, 1978 :

(2.) IT may be noted that out of the above questions, questions Nos. 1, 2 and 4 were referred for the opinion of this court, at the instance of accountable person, and questions Nos. 3 and 5 were referred for the opinion of this court at the instance of the Revenue.

(3.) THIS question relates to the value of the estate in the shape of shares and Government securities set apart for payment of Rs. 12,000 per mensem to the Maharani (step-mother of the Raja). The Raja predeceased his stepmother. Under the trust deed, the Maharani is entitled to receive Rs. 12,000 per mensem or Rs. 1,44,000 per annum for her maintenance and other expenses during her lifetime. Therefore, it was contended before the authorities below that a portion of the trust property which would yield Rs. 12,000 per mensem or Rs. 1,44,000 per annum must be excluded proportionately from the principal value of the estate of the Raja. THIS contention was not accepted by the authorities below. The Tribunal, while rejecting the claim of the accountable person on this question, observed as follows :