Law:

Section:

Section 44 of the Estate Duty Act, 1953 - Deductions - Debts and encumbrances - Deceased was a partner in a firm and certain amount was claimed as deduction as it was share of deceased in amount of excise duty and penalty which was outstanding against said firm at time of his death - Whether in view of facts (i) that appeal filed by said firm to assail demand of excise duty had been succeeded and entire liability had been quashed, and (ii) that no demand on account of said liability had been made from deceased, said amount could not be allowed to be deducted as debt under section 44 - Held, yes Facts The deceased was a partner in a firm. The Assistant Controller disallowed the deduction of certain amount claimed as the share of the deceased in the amount of excise duty and penalty which was outstanding against the firm at the time of his death. On appeal, the Tribunal, however, allowed the said deduction. On reference, it was common ground that the appeal filed by the firm to assail the demand of the excise duty and penalty which was then pending had since been succeeded and the entire liability had been quashed. The result was that the liability of the deceased which did not survive and admittedly no such payment was made by the deceased during his lifetime or thereafter out of his estate. The accountable person for the deceased, however, contended that independent of the outcome of the pending appeal challenging the demand of excise duty and penalty from the firm the amount was a 'debt' and, therefore, share of deceased should be deducted while determining net value of his estate. Held From section 44, it is obvious that unless the amount of which deduction is claimed as a debt of the deceased is payable by him, no such deduction can be given. Further, section 5 and definitions given in clauses (15) and (16) of section 2 indicate that the levy of estate duty is on the principal value of all property which passes on the death of such person taking into account all debts and encumbrances which result in deduction of the estate to that extent. In the present case, the deceased was admittedly not required to make the payment nor was such a payment required to be…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492