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TMI Blog1991 (4) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... on 8th July, 1968, the deceased transferred to the trust land admeasuring 89 grounds and 1042 sft. It is common ground that the said trust enjoyed exemption under the IT Act, 1961. 3. One of the issues that arose in the estate duty assessment of the estate of the deceased was whether the value of the land transferred by the deceased to the trust was exigible to estate duty. The Assessing Officer held it was exigible to duty. In this regard, he was impelled by the following considerations: (i) The trust in question was created by the deceased within two years prior to his death, (ii) The deceased himself was one of the trustees of the trust, and, (iii) Consequently, the provisions of s.22 of the ED Act would operate to bring to charge th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person, strongly, supported the impugned order of the first appellate authority. He contended that ss. 5 to 17 of the ED Act are charging sections. If a particular property is rendered liable to duty by the aforesaid sections, then the question would arise whether the property is exempted under s. 22 of the Act. However, where a particular property is not liable to estate duty, the provisions of s.22 cannot be invoked to rope in the property. 8. In the case before us, the trust in question is a public charitable trust which was granted exemption under the IT Act, 1961. Further, even going by the deed of settlement dt. 27th April, 1968, the trust in question was created more than six months prior to the death of the deceased. Similarly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate duty is leviable on the value of the property passing on the death of the deceased. Properties passing on the death of a person fall under two categories, namely,(i) those that actually pass on the death of a person, and (ii) those that are deemed by law to pass on the death of the person. The inclusion of the second category of properties in the taxable estate of the deceased was obviously impelled by the consideration that otherwise duty would be avoided in a number of cases. The former category of cases are governed by s. 5 of the Act, and the latter by the fasciculus of ss. 6 to 17 of the Act. 14. Once it is found that a property actually passed on the death of a person or is deemed by law to pass on the death, it must be held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e date of death. Therefore, under s. 9 of the Act, the property is not one that is deemed by law to pass on the death of the deceased. In other words, the subject property is not exigible to duty to start with. It should, therefore, follow that the provisions of s.22 cannot be called in aid to bring the subject property to charge. If any authority is needed for the aforesaid proposition, it is to be found in the two decisions of the jurisdictional High Court referred to and relied upon by the assessee's learned counsel not only before the Assessing Officer but also before the first appellate authority and before us. 17. As regards the Andhra Pradesh decision in the case of Nawab Mir Barkat Ali Khan Bahadur vs. CED, referred to and relied u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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