1979 (6) TMI 12

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ting of a building and 16 grounds of land. He had a son and three daughters. By a dated 1st March, 1970, he divided the property into four lots and gifted each lot to the son and three daughters, respectively. Part of the property in which the building was situated fell to the lot of one of the daughters and the deceased continued to live in that property till his death on 7th December, 1970. The accountable person claimed exemption with reference to this property under s. 33(1)(n) and the Asst. Controller granted the exemption. The accountable person had some other grievance against the assessment and took the matter in appeal to the Appellate Controller. The Appellate Controller considered that the exemption given by the Asst. Controller ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Controller by raising the question extracted earlier. Section 9 of the E.D. Act provides that property taken under a disposition made by the deceased purporting to operate as an immediate gift inter vivid which shall not have been, bona fide, made two years or more before the death of the deceased shall be deemed to pass on the death. As the gift in the present case was on 1st March, 1970, and as the deceased died on 7th December, 1970, s. 9 was clearly attracted so that the property had to be deemed to pass on the death. Section 33 gives certain exemptions and to the extent relevant to the facts here the provision runs as follows : " To the extent specified against each of the clauses in this sub-section, no estate duty shall be pay....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... result of the said fiction, the date of gift merged with the date of death. His further submission was that if on the date of gift the deceased was in possession, he must be deemed to be in possession on the date of death so as to attract s. 33(1)(n). Relying on s. 3(3) it was argued that whatever applied to passing on death would apply to deemed passing and that as in this case the exemption would have been available if the property actually passed on death, it should be available even if it is deemed to pass on death. It is unnecessary to go into the wider question as to the effect of s. 3(3) and s. 9 in considering the exemption under s. 33(1)(n) as far as the present case is concerned. In the present case we have already extracted t....