TaxTMI 
TaxTMI 
1983 (3) TMI 50
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....f Estate Duty, Hyderabad, applied to the Incometax Appellate Tribunal to refer the question of law, referred to above said to be arising out of the order of the Tribunal, dated 3rd July, 1976, which arises under the following circumstances. The late Sri K. Ganga Reddy died on July 5, 1972, at a time when he was a member of the HUF consisting of himself and his six sons. Apart from his share in the joint family property, he also had certain separate immovable and movable properties. The Asst. Controller, while computing the principal value of the estate, took the value of the free estate at Rs. 1,08,530 and the value of the share of the lineal descendants u/s. 34(1)(c) of the Act at Rs. 1,31,753, thereby making the total principal value a....
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....y of agricultural land, a sum representing one-fourth of the estate duty payable on that part of the estate which consists of agricultural land, the duty on such part being a sum which bears to the total amount of estate duty the same proportion as the value of the agricultural land bears to the value of the estate." Section 34 of the Act runs as under: " 34. Aggregation.-(1) For the purpose of determining the rate of the estate duty to be paid on any property passing on the death of the deceased, (a) all property so passing other than property exempted from estate duty under clauses (c), (d), (e), (i), (j), (1), (m), (mm), (n), (o) and (p) of sub-section (1) of section 33 ; (b) agricultural land so passing, if any, situate in any ....
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....ing a right or debt or benefit that is treated as Property by virtue of the Explanations to clause (15) of section 2, shall not be aggregated with any property, but shall be an estate by itself, and the estate duty shall be levied at the rate or rates applicable in respect of the principal value thereof. (4) Every estate shall include all income accrued upon the property included therein down to and outstanding at the date of the death of the deceased. (5) For the purposes of this section, no property shall be aggregated more than once nor shall estate duty in respect thereof be levied more than once on the same death. " It is quite patent from the language of s. 35(3) of the Act, in particular with reference to the non obstante cl....
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.... High Court held (P. 333) : " Affirming the decision of the Tribunal, that a reading of sections 5 and 35(1) and Schedule II made it clear that the property of the deceased passing on his death being below Rs. 50,000 was not chargeable to estate duty at all, and this fact was not altered by the aggregation of the property passing on his death with the property of his lineal descendants under section 34. The aggregation had to be done only for the purpose of determining the rate at which the property passing on his death should be assessed to estate duty. But this was subject to the condition that, independently of the aggregation, the property should have been liable to estate duty. Since this condition was not fulfilled in this case, th....