1969 (7) TMI 11

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....t runs thus : "Whether, on the facts and circumstances of the case, the amount to be deducted under section 50A of the Estate Duty Act had been correctly determined by the Tribunal at Rs. 3,200?" The relevant facts appearing from the order of reference may be stated in brief. The deceased, C. Buchiraju, who died on August 5, 1961, had made two gifts of Rs. 40,000 each to his two grandsons se....

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.... the aforesaid two gifts was taken into consideration for assessment of estate duty. The question for consideration was as to the amount of gift-tax to be allowed as a deduction from the estate duty. The Assistant Controller and the Appellate Controller held that the sum deductible was Rs. 2,560 and not Rs. 3,200. The Tribunal took the contrary view. It was of opinion that the assessable gift-tax ....

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.... 15, be given credit, in addition to the amount so paid, for an amount equal to 10 per cent. of the amount so paid". Clearly, the gift-tax payable by the assessee was Rs. 3,200. For his voluntary payment within 15 days of his making the gift he was given a credit and he is not to be penalised, The ten per cent. of the amount credited to him would in no circumstances constitute a gift-tax. To ta....