Proportionate estate duty relief under section 50B must use assessed duty and the statutory formula without an extra deduction.

Relief under section 50B of the Estate Duty Act is computed on the basis of the assessed estate duty without importing an extra deduction unless the text expressly requires it. The correct proportionate formula is x = mn/p, because the duty paid out of sale proceeds is applied directly in the statutory proportion and is not reduced before the calculation. For section 50B, "estate duty payable" means the duty determined on assessment under section 58, not a figure further lowered by relief already allowed under section 50. The stated interpretation preserves the same meaning across the deduction provisions and fixes the relief by reference to the assessed liability.

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Issues: (i) Whether, for relief under section 50B of the Estate Duty Act, the correct formula is x = mn/p or x = m(n - x)/p. (ii) Whether, for section 50B, "estate duty payable" means the duty as determined on assessment under section 58 without reducing it by relief allowed under section 50.

Issue (i): Whether, for relief under section 50B of the Estate Duty Act, the correct formula is x = mn/p or x = m(n - x)/p.

Analysis: The language of section 50B requires the relief to be computed on the proportion between the estate duty paid out of the sale proceeds and the gross proceeds of transfer. The computation adopted by the appellate authority better accords with the statutory wording, because the duty paid out of the sale proceeds is not to be reduced before applying the proportionate formula. The alternative formula would add a reduction not warranted by the provision.

Conclusion: The correct formula under section 50B is x = mn/p. The revenue's challenge on this issue failed.

Issue (ii): Whether, for section 50B, "estate duty payable" means the duty as determined on assessment under section 58 without reducing it by relief allowed under section 50.

Analysis: The expression "estate duty payable" must bear the same meaning throughout the deduction provisions. Sections 50 to 50B operate after assessment and deal with reduction of duty, not with reworking the assessed principal liability. Reading section 50B in its context shows that the duty payable is the amount fixed on assessment under section 58, and it does not vary depending on whether relief under section 50 has already been granted. Deducting the stamp duty amount from the assessed duty was therefore incorrect.

Conclusion: For section 50B, "estate duty payable" means the duty determined on assessment under section 58 without deducting relief under section 50. This issue was decided in favour of the accountable person.

Final Conclusion: The computation of relief under section 50B had to proceed on the assessed estate duty without subtracting the earlier section 50 relief, and the revenue's appeal failed while the accountable person's appeal succeeded.

Ratio Decidendi: Where a provision grants proportionate relief against estate duty, the expression "estate duty payable" refers to the assessed duty fixed under the charging and assessment provisions, and the relief must be computed according to the statutory formula without importing an additional deduction unless the text expressly provides it.

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