TaxTMI 
TaxTMI 
1982 (1) TMI 50
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....his widow and five sons, the youngest of whom was Ram Mohan Das Tandon, the deceased. Lala Man Mohan Das was the treasurer of the Allahabad Bank. He had expressed a desire that after his death the treasurership of the bank be carried on by his family members. On his death, Lala Man Mohan Das left certain properties which belonged to him individually. After his death, his wife and his five sons executed a declaration of trust dated May 20, 1953. They created a trust called " Lala Man Mohan Das Trust ". The trust was irrevocable so long as any of the sons of late Lala Man Mohan Das continued to function as treasurer of the Allahabad Bank. The properties transferred to the trust were certain securities, shares in companies, cash balances in the bank, etc., totalling a net sum of Rs. 3,17,419-48. Clause 6 of the deed of trust provided that the trustees agree to recognize the following members of the family of late Lala Man Mohan Das as beneficiaries of the trust whose share in the income and profits of the trust shall be as follows: At serial No. 1 Srimati Chameli Devi (the widow of Lala Man Mohan Das) was mentioned and her share was Rs. 500 per month.. Serial No. 2 mentioned another....
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....is death." The Tribunal further held: "Since the value of the deceased's share has to be included in the estate duty assessment, we are of the opinion that on a notional basis the family's share in the trust property as per the latest balance-sheet of the trust b" Learned counsel for the accountable person submitted that the deceased's share in the trust property was a contingent interest. It was not a beneficial interest and so it could wt. be to find out the value of the estate of the deceased's joint family in order to ascertain his share in the entire estate. Learned counsel did not dispute the finding that the deceased's family, as such, had a share in the trust property and its income. The deceased was the person nominated who was entitled to receive the income and, after his death, his heir who was in line with Man Mohan Das was mentioned as the one entitled to receive payment of share. The deceased had a present continuing interest to receive a share of the, trust properties if and when revoked. This interest passed on his death. Such an interest could not be characterised as, a contingent interest. In our opinion, the authorities below rightly added the currently ava....
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....on has submitted that the Tribunal misunderstood the submission and misconceived the true factual position. The deceased had applied to the municipal board for permission to construct residential houses on the open land but the same was refused and the plan submitted rejected on the ground that the land, where buildings were proposed to be constructed, had been left for purposes of park or lawn (open land) for the other houses. By the other houses were meant the seven blocks of houses which surrounded the open area. The municipal board did not evince any desire or interest in reserving the land for developing it as a municipal park. There was, hence, no possibility of the municipality acquiring the land with a view to develop it as a park. The municipal board, on the other hand, rejected the development plans submitted by the deceased on the ground that the open area had been left to be used as such or as a park for the other houses in the Ahata. In this situation, the value of the land was not less, or more, than the value of that portion of the land which the departmental authorities have treated as land appurtenant to the seven blocks of buildings in this Ahata and on that groun....
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.... (1) of section 33 ; (b) agricultural land so passing, if any, situate in any State not specified in the First Schedule; and (c) in the case of property so passing which consists of a coparcenary interest in the joint family property of a Hindu family governed by the Mitakshara, Marumakkattayam or Aliyasantana law, also the interests in the joint family property of all the lineal descendants of the deceased member; shall be aggregated so as to form one estate and estate duty shall be levied thereon at the rate or rates applicable in respect of the principal value thereof." It will be seen that the property exempt from estate duty under the above-mentioned clauses of s. 33(1) has to be excluded from being considered for purposes of determining the rate. Section 33(1) provides : " 33. (1) To the extent specified against each of the clauses in this subsection, no estate duty shall be payable in respect of the property of any of the following kinds belonging to the deceased which passes on his death-... (n) one house or part thereof exclusively used by the deceased for his residence, to the extent the principal value thereof does not exceed rupees one lakh if such house is ....