JABBAR MAL DUGGAR Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution of India, the petitioner has challenged the correctness of the order dated April 14, 1975, by the Central Board of Direct Taxes (annex. " G ") and also order dated June 7/9, 1975, passed by the Controller of Estate Duty, Rajasthan I, Jaipur (annex. " I "), under Section 64(7) of the Estate Duty Act, 1953 (hereinafter to be referred to as "the Act"), whereby the said authorities refused the petitioner's prayer for payment of interest on the amount overpaid as estate duty.

(2.) THE petitioner is the son of the deceased, Budh Mal Duggar, who expired on March 17, 1954. THE petitioner and his mother, Smt. Dhanni Devi, widow of Budh Mal Duggar, being the accountable persons, furnished an account of the property owned by the deceased, Budh Mal. THE Dy. CED, Delhi, held that the entire property left by the deceased, Budh Mal, would be deemed to have passed on his death to the accountable persons. Accordingly, the Deputy Controller determined the principal value of the property as Rs. 26,75,288, and the duty payable thereon, Rs. 6,03,986'15 by his order dated October 30, 1958. THE accountable persons filed appeal to the Central Board of Direct Taxes (hereinafter to be referred to as " the Board ") against the order of the Deputy Controller, which, was decided on December 30, 1961. THE Board allowed certain reductions but upheld the finding of the Deputy Controller that the entire property in the hands of the deceased passed on his death to the accountable persons or, at any rate, will be deemed to have passed on his death. Dissatisfied with this finding of the Board, the accountable persons presented an application requiring the Board to refer to the High Court the question of law arising out of its order. THE Board allowed the application and stated the case for the opinion of the High Court of Rajasthan at Jodhpur on the following question of law arising out of the Board's order:

(3.) THE Amendment Act received the assent of the President on September 19, 1958. Section 1(2) of the Amendment Act provides that the Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. THE E. D. (Amend.) Act, 1958, came into force on July 1, 1960, vide Notification No. GSR 656, dated May 30, 1960*