CONTROLLER OF ESTATE DUTY Vs. HARISINGHJI LATE

JUDGEMENT

(1.) THIS is a reference under Section 64(1) of the E.D. Act, 1953.

(2.) LATE Raja Harisinghji of Kuchaman was a jagirdar of Kuchaman, an erstwhile jagir in Jodhpur. The jagir of late Raja Harisinghji was resumed on 1st July, 1954, under the provisions of the Rajasthan Land Reforms and Resumption of Jagirs Act, 1952 (hereinafter referred to as " the Act "). The jagirdar died on 15th January, 1956. His legal heirs and accountable persons, for purpose of estate duty, were his widow, Rani Dariyab Kanwar, his brother, Raja Pratap Singh, who was adopted by Rani Dariyab Kanwar as a son and his minor daughter, Miss Snehprebha, through her guardian, Rani Dariyab Kanwar. The Dy. Controller of E.D. included in the value of the estate of the deceased, compensation receivable by the maintenance-holder, Dariyab Kanwar, on the resumption of his jagir. An argument was advanced by the accountable persons that the compensation payable to the widow, under Section 27 of the Act, should not have been included in the total value of the estate of the late jagirdar. However, this contention was negatived by the Dy. Controller as well as by the Appellate Controller of Estate Duty. This contention was also raised on behalf of the accountable persons in appeal before the Income-tax Appellate Tribunal, Bombay Bench " B ", that the maintenance allowed to Rani Dariyab Kanwar, under the provisions of Section 27, I.T. Act, should be excluded from the dutiable estate of the deceased. This contention was accepted by the Tribunal which held that the amount of Rs. 1,08,000 represented the commuted value of the annual maintenance amount of Rs. 7,200 allowed to Rani Dariyab Kanwar by virtue of an order of the Jagir Commissioner dated 7th May, 1958. The Controller of Estate Duty, Rajasthau, Jaipur, moved an application requiring the Income-tax Appellate Tribunal to draw up a statement of the case and refer the following question of law having arisen out of the order of the Income-tax Appellate Tribunal dated 16th July, 1971.