1982 (10) TMI 31

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....tment to the widow of the deceased several years after the death of the deceased was the estate of the deceased passing on his death to the accountable person in terms of section 5(1) of the Estate Duty Act, 1953 ? " The facts in so far as they are material for the purpose of this reference application are that Col. Ajit Prasad secured his premature retirement from Army in February, 1970; he got his pension commuted for sum of Rs. 54,452. Out of this amount, Col. Ajit Prasad was paid only sum of Rs. 33,714, because the remaining amount of Rs. 20,708 was retained and made over to the Income-tax Department under s. 226(2) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), towards the amount of income-tax outstanding for the asse....

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....fore held that the refund of Rs. 28,574 was due to the deceased at the time of his death. In appeal the Appellate Controller, Lucknow, held that had proper orders been passed and deduction made accordingly, there would have been no question of refund on that account. He further held that the amount was refundable to the accountable person and the whole thing started because the deceased had deposited that amount. Accordingly, he held that the amount in question was rightly taxed and included by the Asst. Controller in the estate of the deceased. In second appeal, the Income-tax Appellate Tribunal affirmed the order of the Appellate Controller in this regard. Aggrieved, the accountable person has got the aforementioned question of law ....

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....e and the amount realised from him in excess of what was due from him was ordered to be refunded. While receiving the sum of Rs. 28,574 what the accountable person received was the amount that was due to her deceased husband. It is true that as the ex parte assessment order made against the deceased had not been set aside during his lifetime, it was not possible for the deceased to receive that asset in his lifetime and his right to receive the same depended upon the contingency of the ex parte assessment orders being set aside and fresh assessment being made and that such contingency happened long after his death. However, s. 2(16) of the E.D. Act has defined property passing on the death as including property passing either immediately on....