1971 (7) TMI 26

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.... principal value of the estate which would include the value of agricultural land in Pepsu which was not liable to duty but was liable to inclusion in the value of the estate ?" It has arisen in the following circumstances. Col. Raghbir Singh died on 7th January, 1953, leaving property, both agricultural and non-agricultural. On his death, his widow, Shrimathi Virpaul Kaur, furnished an account of that property to the Assistant Controller of Estate Duty, Patiala. The agricultural property was situated in the former State of Pepsu and the same was exempt from estate duty at the time of the death of the deceased. The Deputy Controller of Estate Duty, who completed the assessment, determined the net principal value of the estate of the dece....

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....e and the rate of duty appropriate thereto. When that was done, the principal value exceeded rupees one lakh and there was, therefore, a definite rate of duty applicable to the estate of the deceased. The duty was, however, to be levied on the dutiable portion of the estate, the rest being exempt, but at the rate applicable to the aggregate estate. The charging section in the Act is section 5, the relevant portion of which reads: "5. Levy of estate duty.-(1) In the case of every person dying after the commencement of this Act, there shall, save as hereinafter expressly provided, be levied and paid upon the principal value ascertained as hereinafter provided of all property, settled or not settled, including agricultural land situate i....

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....on 35, which concerns the rates of estate duty on property, including agricultural land, and it reads : "35. Rates of estate duty on property including agricultural land.- (1) The rates of estate duty shall be as mentioned in the Second Schedule: Provided that no such duty shall be levied upon-...." A combined reading of these sections would show that if the value of non-agricultural property of a deceased person exceeds rupees one lakh, then the same would be chargeable to estate duty. The rate at which the said duty would be leviable would be arrived at after including the agricultural land situate in Pepsu belonging to the deceased, but which was not liable to duty otherwise. The same would, however, be included for the determin....