TaxTMI 
TaxTMI 
1969 (7) TMI 11
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....s 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 separately on October 21, 1957. The deceas....
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....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 was Rs. 3,200 and that amount should be ....
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....t 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 take the contrary view would lead to fantastic res....