Law:

Section:

Section 50A of Estate Duty Act, 1953, read with section 18 of Gift-tax Act, 1958 - Estate Duty - Deductions in respect of gift-tax paid - Deceased had paid an advance tax of Rs. 6,400 under section 18 of 1958 Act - Gift-tax on properties gifted was determined at Rs. 3,200 and deceased was given credit for 10 per cent of advance tax paid, i.e., Rs. 640 - Total amount available for gift-tax was thus Rs. 7,040 out of which assessee (deceased) took a refund of Rs. 3,840 - While completing assessment under Estate Duty Act, Assistant Controller and Appellate Controller held that sum deductible was Rs. 2,560 and not Rs. 3,200 - Tribunal, however, opined that assessable gift-tax was Rs. 3,200 and that amount should be deducted - Whether since assessee had paid a gift-tax of Rs. 3,200, accordingly, from estate duty payable Rs. 3,200 was to be deducted - Held, yes - Whether, therefore, view taken by Tribunal was correct - Held, yes FACTS The deceased deposited Rs. 6,400 as advance gift-tax under section 18 of the Gift-tax Act. The gift-tax payable was determined at Rs. 3,200. At the time of assessment he was given credit to the tune of Rs. 640 which represented 10 per cent of the amount deposited. The total amount available for gift-tax was Rs. 7,040. The assessee took a refund of Rs. 3,840. While completing assessment, the Assistant Controller and the Appellate Controller held that the sum deductible was Rs. 2,560 and not Rs. 3,200. The Tribunal took the contrary view and it was of opinion that the assessable gift-tax was Rs. 3,200 and that amount should be deducted. On reference : HELD Clearly, the gift-tax payable by the assessee was Rs. 3,200. For his voluntary payment within 15 days of his making the gift he was given a credit and he was not to be penalised. The ten per cent of the amount credited to him would in no circumstances constitute a gift-tax. Credit was given to the tune of 10 per cent for the good conduct evinced by the assessee. If this construction of section 18 of the 1958 Act was accepted, then what was to be deducted under section 50A was only the gift-tax and not the 10 per cent given by way of credit. The assessee paid a gift-tax of Rs. 3,200 and…

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