Validity of estate duty provision upheld; contrary High Court answer set aside and matter remanded for fresh merits review.

Section 34(1)(c) of the Estate Duty Act, 1953 was held valid, and the contrary High Court view could not stand after the Supreme Court had already upheld the provision. Because the High Court had relied on its earlier decision without independently examining the merits, its answer in favour of the assessee was set aside. The matter was remanded to the High Court for fresh consideration on merits in accordance with law.

---

---

Issues: Whether section 34(1)(c) of the Estate Duty Act, 1953 was ultra vires and whether the High Court's answer in favour of the assessee could stand after the earlier contrary Supreme Court ruling.

Analysis: The High Court had followed its earlier view that section 34(1)(c) was ultra vires and had accordingly answered the referred question in favour of the assessee. That foundation no longer survived because the earlier High Court decision had since been reversed by the Supreme Court, which upheld the validity of section 34(1)(c) of the Act. Since the High Court had not examined the merits of the question independently, its decision required interference and the matter had to be sent back for reconsideration in accordance with law.

Conclusion: The answer in favour of the assessee was set aside, the validity of section 34(1)(c) stood affirmed, and the case was remanded to the High Court for a fresh decision on merits.

---