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Issues:
1. Whether the ex gratia grant of Rs. 1 lakh should be excluded from the estate of the deceased for the purpose of levy of estate duty. Analysis: The case involved a dispute regarding the inclusion of an ex gratia grant of Rs. 1 lakh in the estate of a deceased individual for the purpose of estate duty. The deceased, an employee in the Air Force, received the ex gratia payment, which was contested by the Asstt. Controller for levy of estate duty. The Accountable Person's contentions were rejected by the Controller and confirmed by the Tribunal. The Tribunal, after considering the nature of the payment and relevant legal precedents, ruled in favor of the Accountable Person, stating that the payment was ex gratia and meant for specified family members surviving the deceased. The Tribunal highlighted that the ex gratia payment was discretionary and not a part of the deceased's estate that could be disposed of by the deceased during their lifetime. The Tribunal relied on legal interpretations from the Andhra Pradesh High Court and the Punjab and Haryana High Court, which held that such compensation payments were not includible in the estate of the deceased. The Tribunal emphasized that the payment was made to specified family members as per government orders and was not disputed by the Revenue. The Revenue's argument that the matter should be referred under s. 64 was rejected by the Tribunal, citing that the question of excluding the ex gratia payment from the estate was self-evident based on the nature of the payment, the specified recipients, and the existing legal precedents. The Tribunal concluded that the reference application was dismissed, as it would be merely academic to grant a reference given the clear facts surrounding the ex gratia payment and the applicable legal decisions. In conclusion, the Tribunal upheld the exclusion of the ex gratia grant of Rs. 1 lakh from the dutiable estate, based on the nature of the payment, the specified recipients, and the legal interpretations provided by the Punjab and Haryana High Court and other relevant legal precedents. The Tribunal's decision favored the Accountable Person, emphasizing the discretionary and non-inheritable nature of the ex gratia payment in question.
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