Law:

Section:

Section 46 of the Estate Duty Act, 1953 - Deductions - Further limitations - An amount was received by deceased's wife by way of gift and a subsequent loan was advanced by her to deceased five years later - Whether there was no material to show that amount of gift had remained with wife and that amount which was lent five years later to husband included amount that had been received as gift five years earlier - Held, yes - Whether Tribunal was correct in holding that section 46 was attracted and, therefore, part of debt outstanding might not be regarded as having abated to extent of amount that had been gifted - Held, yes Section 44 of the Estate Duty Act, 1953 - Deductions - Debts and encumbrances- Whether estate duty payable is not liable for deduction in computing dutiable estate- Held, yes CASE REFERRED TO Nawab Mir Barkat Ali Khan Bahadur v. CED [1996] 222 ITR 612/ 89 Taxman 102 (SC) [Para 4]. N. Srinivasan for the Applicant. Mrs. Chitra Venkataraman for the Respondent. JUDGMENT R. Jayasimha Babu, J. - The Tribunal, after having held that the material on record does not show anything to connect the amount derived by the deceased's wife by ways of gift, with the subsequent loan advanced by her-the gift of Rs. 30,000 having been made in the year 1960 and the loan of Rs. 1,09,423 having been advanced to the deceased five years later-the Tribunal has nevertheless proceeded to hold that section 46 of the Estate Duty Act, 1953, was attracted and, therefore, part of the debt outstanding may not be regarded as having abated to the extent of the amount that had been gifted in 1960. 2. Section 46(1)(b) refers to the amount received by the deceased from the person to whom loans were outstanding at the time of the death of the deceased, "being part of the resources of that creditor". Such resources should have been…

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