Estate duty applies to tax refund claims surviving death when the right is treated as property passing on death.

Refund arising from excess tax recovered during the deceased's lifetime was treated as property passing on death for estate duty purposes. The refund claim survived through the widow as heir and legal representative, and the fact that the contingency for payment arose after death did not prevent inclusion. Applying section 2(16) of the Estate Duty Act, 1953, the text states that property passing on death includes property passing after an interval, whether certainly or contingently. On that basis, the refund retained the character of the deceased's property and was chargeable to estate duty.

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Issues: Whether the sum refunded by the Income-tax Department after the death of the deceased was property passing on death and includible in the estate under the Estate Duty Act, 1953.

Analysis: The refund arose from excess tax recovered during the deceased's lifetime, and the subsequent setting aside of the ex parte assessments led to a determination that the amount was not due as tax. The right to receive the refund was pursued by the widow in her capacity as heir and legal representative. Even though the contingency on which the refund depended occurred after death, section 2(16) of the Estate Duty Act, 1953 treats as property passing on death not only property passing immediately but also property passing after an interval, whether certainly or contingently. On that basis, the amount retained the character of property belonging to the deceased and was liable to estate duty.

Conclusion: The amount of Rs. 28,574 was correctly included in the estate of the deceased and was chargeable to estate duty.

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