1961 (1) TMI 89

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....n?" The assessment years concerned are 1955-56 and 1956-57. The estate duty paid and claimed as a deduction for 1955-56 amounts to GBP2,605-9-4 and for 1956-57 to GBP3,809-1-6. Sub-section (1) of section 10 of the Indian Income-tax Act, 1922, provides that the tax shall be payable by an assessee under the head "profits and gains of business, profession or vocation" in respect of the profits or gains of any business, profession or vocation carried on by him, and sub-section (2), that such profits or gains shall be computed after making the allowances specified in that sub-section. The last of the allowances specified therein-the allowance specified in section 10(2)(xv)-is: "any expenditure (not being an allowance of the nature....

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....dia and the person accountable has obtained a certificate from the Controller showing that either the estate duty in respect thereof has been paid or will be paid or that none is due, as the case may be." And sub-section (3) of that section: "Any company which fails to comply with the provisions of subsection (1) or sub-section (2) shall be liable to a penalty of one thousand rupees or a sum equal to double the amount of the estate duty payable according as the Controller may direct: Provided that the Controller may reduce the penalty in any particular case." It is common ground that the assessee was liable to pay the duty it actually paid under sub-section (1) of section 84 and that failure to do so would have entai....

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....asses of assets shall be determined for the purpose of that section. Under rule 8 of the Estate Duty Rules, 1953, shares in a company should be deemed to be situated at the place where the company was incorporated. In view of these provisions the shares with which we are concerned do not apparently "pass" under section 5 of the Estate Duty Act, 1953. Paragraph (1) of article III of the agreement between the Government of India and the Government of the United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to duties on the estates of deceased persons provides that subject to paragraph (2) of that article duty shall not be imposed in India on the death of a person who was not domiciled at the....