1976 (10) TMI 53

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....years from Birbal Nayak and other Adivasis of Orissa State. The deceased then constructed a building on the aforesaid plot of land between the year 1966 and 1968 at a cost of Rs. 39,618. No document was, however, executed for the purchase of the land by the deceased and the lease deed between the Adivasis and Joginder Singh and Jai Singh had not been registered. 3. While determining the total value of the deceased's estate, the Assistant Controller of Estate Duty included the value of the aforesaid house property at an estimated cost of Rs. 1,80,416 being 16 times of the net rental income receivable from it and on appeal, the Appellate Controller confirmed the action of the Assistant Controller of Estate Duty rejecting the accountable pe....

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....fore, according to him, the deceased had not acquired any right, title and interest in the plot of land at Rourkela and the construction made by her on the land in which she had no title illegal. In other words, the deceased had no legal right in the disputed property and as such was not includible in her taxable estate. He urged that mere possession as a matter of right is not ownership in the light of the decision of the case of Biswanath Chatterjee(1). He alternatively urged that the value estimated by the lower authorities for the property which was not free from encumbrances was excessive. He claimed that in determining net income being the basis for valuation in this case, the Asst. Controller of Estate Duty should have deducted expen....

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....long in peaceful possession of the deceased without interruption of any other in the enjoyment of the usufructs of it. We were told that the name of the deceased was mutated in the Municipal register in respect of the said property and the deceased used to pay municipal tax regularly. 7. s. 5 of the Estate Duty Act is the charging Section which provides certain requirements for levy of duty in a particular case. One of the requirements is that the duty shall be paid in respect of all properties which passes or deemed to pass on the death of the person. The Supreme Court in the case of Hussainbhai Mohammedbhai Badie(2) has observed that the word 'Passes' in s. 5 of the Estate Duty Act means 'changes hands'. What is relevant in determining....