https://www.taxtmi.com/caselaws?id=25804 For estate duty, a debt is deductible only to the extent of the deceased's enforceable liability existing at the date of death. Where a decree was against a partnership firm and the deceased held only a one-third share, only that proportion of the decree debt was allowable as a deduction; possible future recovery or contribution rights did not enlarge the estate's liability. A separate sum paid to compromise a suit was deductible because the settlement was bona fide, realistic, and reflected an actual liability arising from the deceased's management of minors' estate. The estate therefore obtained deduction only for the one-third partnership liability and the compromise payment in full. en-us Tue, 17 Dec 1985 00:00:00 +0530 Mon, 01 Feb 2010 10:30:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25804 For estate duty, a debt is deductible only to the extent of the deceased's enforceable liability existing at the date of death. Where a decree was against a partnership firm and the deceased held only a one-third share, only that proportion of the decree debt was allowable as a deduction; possible future recovery or contribution rights did not enlarge the estate's liability. A separate sum paid to compromise a suit was deductible because the settlement was bona fide, realistic, and reflected an actual liability arising from the deceased's management of minors' estate. The estate therefore obtained deduction only for the one-third partnership liability and the compromise payment in full. Case-Laws Income Tax Tue, 17 Dec 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25804