TaxTMI 
TaxTMI 
1997 (7) TMI 112
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and in the second reference one question was so referred. These are as under : " T. R. C. No. 122 of 1975 : (1) Whether, on the facts and in the circumstances of the case, the value of gold was rightly included in the principal value of the estate of the deceased ? (2) If the answer to the above question is in the affirmative, whether the correct value to be included is on the basis of the market value of gold prevailing in India as on the date of death or the international price of gold as on that date ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the market value of the annuity deposits was to be included in the principal value of the estate of the deceased ? ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... U. K., interest paid on death duty in U. K., interest payment to Lloyds Bank in U. K., and loss on devaluation ?" Under this question, the appellants who are accountable persons claimed the following deductions under section 48 of the Act : Pound sterling " Death duty paid in U. K. 95,320.12 Interest paid on delayed payment of that duty 8,034.10 Interest and service charges paid to Lloyds Bank 1,078.25 Solicitor's fee paid in London 4,855.55." This case relates to the assessment of the estate duty of the estate of the late H. H. Rajkuverba Dowgar Maharani Saheb of Gondal who died on October 14, 1968, leaving behind extensive properties both in England and in India. The appellants are her two daughters and are accountab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e property being situate out of India he may make an allowance from the value of the property on account of such expense not exceeding in any case five per cent. on the value of the property. 49. Where any property passing on the death of the deceased is situate in a non-reciprocating country and the Controller is satisfied that by reason of such death any duty is payable in that country in respect of that property, he may, subject to such rules as may be made by the Board in this behalf, make an allowance of the whole or any part of the amount of that duty from the value of the property. Explanation. --- In this section, the expression ' non-reciprocating country ' means any country other than India which has not been declared to be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....shall be ascertained after taking into account any credit, allowance or relief, or any remission or reduction of duty, otherwise than in respect of duty payable in the territory of the other Contracting Government." On the basis of the provisions as contained in sections 30, 48 and 49 and article VI of the agreement aforesaid question No. (4) was answered in the affirmative in favour of the Revenue and against the accountable persons. Mr. Sharma, learned counsel for the appellants, accountable persons, submitted that section 30 had nothing to do with the computation of income and that the scope of sections 30 and 48 was different. He said section 30 only provided for the avoidance or relief of double taxation with respect to estate duty ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....not the case of the appellant that under section 30 of the Act in terms of the agreement between the two Governments, i.e., the Government of India and the Government of United Kingdom, relief has not been granted to the appellants under article VI of the agreement. Allowance of the estate duty paid in the U. K. was given in the estate duty payable in this country. The amount of pound sterling 75,320.12 as the death duty paid in U. K. cannot be treated as an expense which the appellants are entitled to claim as an additional expense in administering or in realising the property falling under section 48 of the Act. The appellants are only entitled to deduction of the death duty paid in England out of the estate duty payable as computed by th....