TaxTMI 
TaxTMI 
TaxTMI 
1994 (10) TMI 114
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....2-1983 to the Accountable Person (for short, the AP), Smt. Sitabai, wife of late Shri Hiranand requiring her to make compliance as specified in the notice by 20-1-1984. Since the compliance was not made, he fixed the case for hearing from time to time and ultimately issued a notice under section 59 of the Act to the Accountable Person on 5-6-1987 requiring her to deliver an account of the property in respect of which estate duty was payable by 26-6-1987. In response thereto, the AP filed an application on 22-6-1987 requesting for further extension of 15 days. As the AP did not file the account of the estate at all, the ACED framed an assessment under section 58(4) of the Act to the best of his judgment. He accordingly computed the net princ....
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.... In the present case, no account of estate has been filed at all and the notice issued under section 59 is beyond time limit as laid down under section 73A(a). Hence, the contention of the AP is correct that the proceedings are barred by limitation of time and the order passed by the AO is invalid. In view of the above facts, the order passed under section 58(4) by the ACED is hereby annulled being invalid as the proceedings are barred by limitation of time." The revenue is aggrieved by the above findings of the Appellate Controller of Estate Duty and Is in appeal before the Tribunal. 4. The learned Departmental Representative submitted that sub-section (3) of section 53 provides that an account shall be furnished by the AP within six mo....
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....e years and this was the period of limitation prescribed under section 73A(a) of the Act. The Appellate Controller of Estate Duty was, therefore, not justified in holding that the proceedings had commenced with the issue of notice under section 59 which was beyond the prescribed time limit. 5. The learned authorised representative of the AP, on the other hand, submitted that where the account of estate of the deceased has not been delivered within the time limit prescribed under section 53, the ACED is empowered to commence the proceedings for the levy of estate duty by issue of a notice under section 59(a) or (b). In the instant case, the ACED commenced the proceedings for levy of estate duty against the AP by the issue of a notice under ....
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..... Section 73A reads thus : " Limitationfor commencing proceedings for assessment or reassessment : 73A. No proceedings for the levy of any estate duty under this Act shall be commenced-- (a) in the case of a first assessment, after the expiration of five years from the date of death of the deceased in respect of whose property estate duty became payable ; and (b) ** ** ** It is thus clear that section 73A(a) limits the period beyond which no proceedings for the levy of estate duty could be commenced in the case of a first assessment which is to be made under section 58 of the Act-to five years from the date of the death of the deceased in respect of whose property-estate duty has become payable. It is not in dispute that in the case be....
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....r of limitation created by section 73A of the Act. Similar view has been taken by the Allahabad High Court in the case of CED v. Smt. Manorama Devi [1980] 123 ITR 322. Respectfully following the decisions it has to be held that the assessment framed by the ACED is not barred by limitation as a notice under section 55 of the Act was issued and served by him before the expiry of five years from the date of death of the deceased. 8. We have perused the case of Ashok Singh referred to by the learned representative of the AP. In that case one 'G' died intestate on 6-2-1957. G's son 'A' flled an application for the grant of a succession certificate in the City Civil Court at Calcutta. By an order dated 29-7-1972 the Court directed 'A' to produce....