TMI Blog1983 (9) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... eath, his nominee should get double that mount insured. The Asst. CED held that the cause of action was created by the deceased during his life time only and the amount was clearly dutiable under s. 5 of the ED Act. 3. The accountable person placed reliance on the decision of CED vs. Arunkumar C. Kachy (Taxation Jan., 1976 Sec. VI) (sic) in support of his contention that an amount of Rs. 60,000 as claimed on account of accidental death was exempt. The Asstt. CED relied upon the decision of Bharatkumar Manilal Dalal vs. CED (1975) 99 ITR 179 (Guj) and included the received amount in the principal value of the estate of the deceased. The accountable person being aggrieved by the order of the Asst. CED went in appeal before the Appellate CED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee or legal heirs are entitled to receive the same after his death. An amount of Rs. 60,000 became receivable by the accountable person after the death of Shri R. G. Parab. The accrual of the amount from the claim of accident has arisen after the death of the deceased. 7. The decision of the Madras High Court in the case of M.C.T. Muthiah Anr. vs. CED (1974) 94 ITR 323 (Mad) was relied upon wherein the following observations are made: "As the deceased never had any interest during his lifetime in the money paid on death under the personal accident policy, though he was competent to dispose of the same by Will, the sum paid under the policy is not aggregatable with the other estate of the deceased and is to be treated as an estate by i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the deceased has not interest in the contracts of insurance contained in the two accident policies. The deceased had a property in the nature of interest to receive payment in case of less of limb arising as a result of accident or the deceased purchased an interest for the benefit of his legal representatives in case of less of his life as result of accident. It, therefore could not be said that the deceased had never an interest in the contracts of insurance contained in the said two policies and money payable thereunder. It cannot be contended that the principal value of the property should be determined with reference to the death of the insured and at the time of his death the property in question had only the value of the premiums w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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