TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the assessee could deduct, in computing the value of the estate for estate duty, a sum claimed towards maintenance of the widow and unmarried daughter and towards the unmarried daughter's marriage expenses.
Analysis: A claim for maintenance does not become a deductible encumbrance unless the estate is shown to be burdened by a legally enforceable charge or liability. Under the Hindu Adoptions and Maintenance Act, 1956, the daughter's right to maintenance includes reasonable marriage expenses, but that right must be worked out under the statute and does not by itself create an automatic charge on the deceased's property. Where no charge had been created and no material showed that the estate was encumbered by debt or liability, the amount attributable to maintenance could not be deducted. The later view of the court, supported by the Supreme Court's approach, prevailed over the earlier decision relied upon by the assessee.
Conclusion: The deduction was not allowable, and the answer to the referred question was against the assessee and in favour of the Revenue.
Ratio Decidendi: A claim for maintenance or marriage expenses is not deductible in estate duty computation unless it has matured into a legally enforceable charge or encumbrance on the deceased's estate.
TaxTMI 
