TMI Blog1983 (12) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... computing the principal value of the estate. The petitioners also claimed that from the estate duty payable, the probate duty payable should be deducted. The petitioners paid an amount of Rs. 6,35,650 as estate duty on the basis of the return. The respondent No. 1 passed a provisional assessment order dated September 21, 1979, under s. 57(1) of the Act without taking into account the deductions claimed by the petitioners. Respondent No. valued the estate of the deceased at Rs. 47,69,584 and determined the estate duty payable at Rs. 30,26,146.40. Respondent No. 1 by notice dated September 21, 1979, raised a demand of Rs. 30,13,660.69. As the petitioners failed to pay the amount demanded by the notice, respondent No. 1 issued notice dated N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e person delivering the account on the basis of the account so delivered." The learned counsel urged that the provisional assessment made under s. 57(1) of the Act is summary in nature and the Assistant CED is not bound to make any inquiry before making such assessment. The object of assessment is to collect tax from certain classes of assessees before the regular assessment. Shri Mehta submits that the provisional assessment being summary in nature and without requiring the controlling authority to hold any inquiry and as there is no right to the assessee to prefer any appeal against the provisional assessment, it must be held that the Controller must pass the order of provisional assessment only on the basis of the accounts delivered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the allowances or deductions claimed are admissible. If there be discrepancy between the return made and the accounts and documents accompanying the return, the Income-tax Officer may ask the assessee to explain the discrepancy, but he must make a provisional assessment on the basis of the return initially made or clarified and the accounts and documents filed. He cannot make a provisional assessment by holding that certain claims made by the assessee are in law unjustified." Shri Mehta submits, and in my judgment correctly, that the petitioners raised disputed questions of law as to whether the petitioners are entitled to claim deductions in respect of (1) estate duty liability, and (2) the amount paid as probate duty and the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the CED cannot be said to be questions concluded by decision and, therefore, not disputed questions of law. In my judgment, the questions raised by the petitioners were disputed questions of law and, therefore, while passing the provisional assessment order, the Controller could not have ignored the claim of the petitioners and passed a provisional assessment order requiring the petitioners to pay duty of Rs. 30,13,660.69. Therefore, the provisional assessment order passed by respondent No. on September 21, 1979, is set aside and, consequently, also the demand notice issued by respondent No. 1 in pursuance of the said order. It is open to respondent No. 1 to pass a fresh provisional assessment order in accordance with the accounts su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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