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Section 44 of the Estate Duty Act, 1953 - Deductions - Debts and incumbrances - Whether estate duty payable on estate of deceased was deductible in hands of accountable person - Held no FACTS The accountable person claimed that immediately on death of the deceased, the estate duty became a charge on the property and if the trust market value of the estate had to be estimated under the provisions of section 36, the estate duty payable would have to be deducted and that the estate duty payable should itself have been allowed as a deduction in computing the principal value of the estate. The Tribunal rejected the accountable person's claim. On reference: HELD In view of the decision of the Gujrat High Court in the case of Shantaben's Narrottamdas v. CED [1978] 111 ITR 365, it was to be held that the estate duty payable on the estate of the deceased was not liable to be deducted under section 44 in the hands of the accountable person. Note: The case has been decided in favour of the revenue. CASES REFERRED TO Smt. Shantaben Natrottamdas v. CED [1978] 111 ITR 365 (Guj.), Mrs. Blanche Nathalia Pinto v. State of Mysore [1964] 5 3 ITR 64(Mys.), Mrs. Constance Lubeck, in re [1970] 78 ITR 199 (Mad.), CED v. Om Prakash Bajaj [1977] 110 ITR 263 (AP) and Smt.Pramila v. CED [1975] 99 ITR 221 (Kar.). JUDGMENT Ratnavel Pandian, J.-The following question is referred by the Income-tax Appellate Tribunal, Madras Bench "B ", Madras, under the provisions of s. 64(1) of the E.D. Act, 1953 (hereinafter referred to as "the Act"), at the instance of the accountable person, for the opinion of this court: "Whether the Tribunal was right in holding that the estate duty payable in respect of the estate of the deceased, AR. RM. Umayal Achi, was not an admissible deduction in computing the principal value of the estate ?" The accountable person is one Sri RM. Arunachalam, who is the adopted son of Smt. AR. RM. Umayal Achi, who passed away on August 20, 1964. The accountable person is also the residuary legatee by the will dated July 20, 1961, executed by the said Umayal Achi. During the hearing of the appeal before the Tribunal, an additional ground was raised with the permission of the…

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