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Issues: Whether interest could be charged under section 70(1) of the Estate Duty Act, 1953 on estate duty payable pursuant to a provisional assessment when payment was postponed in instalments, and whether the contrary precedent barred such levy.
Analysis: Section 57 of the Estate Duty Act, 1953 provides for provisional assessment. After such provisional assessment, the accountable person sought payment by instalments, thereby postponing immediate payment of the duty. Section 70(1) authorises postponement of payment where estate duty cannot be raised at once, on payment of interest not exceeding four per cent or higher interest yielded by the property. The provision is not confined to final assessment and applies to any case of postponed payment of estate duty. Section 70(1) and section 70(2) operate in different fields, and the earlier decision relied upon concerned rectification under section 61 and the permissibility of interest under section 70(2) after regular assessment. That ruling was therefore distinguishable and did not govern the present situation.
Conclusion: Interest under section 70(1) was validly leviable on the postponed payment arising from the provisional assessment, and the challenge to the demand failed.
Ratio Decidendi: Where estate duty payable on provisional assessment is permitted to be paid in instalments and payment is postponed, section 70(1) authorises levy of interest on such deferred payment, and a precedent dealing with section 70(2) after rectification or regular assessment does not control the case.
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