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TMI Blog1969 (7) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and circumstances of the case, the amount to be deducted under section 50A of the Estate Duty Act had been correctly determined by the Tribunal at Rs. 3,200?" The relevant facts appearing from the order of reference may be stated in brief. The deceased, C. Buchiraju, who died on August 5, 1961, had made two gifts of Rs. 40,000 each to his two grandsons separately on October 21, 1957. The decea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration for assessment of estate duty. The question for consideration was as to the amount of gift-tax to be allowed as a deduction from the estate duty. The Assistant Controller and the Appellate Controller held that the sum deductible was Rs. 2,560 and not Rs. 3,200. The Tribunal took the contrary view. It was of opinion that the assessable gift-tax was Rs. 3,200 and that amount should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt so paid, for an amount equal to 10 per cent. of the amount so paid". Clearly, the gift-tax payable by the assessee was Rs. 3,200. For his voluntary payment within 15 days of his making the gift he was given a credit and he is not to be penalised, The ten per cent. of the amount credited to him would in no circumstances constitute a gift-tax. To take the contrary view would lead to fantastic re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding anything contained in this Act, the estate duty payable under this Act shall be reduced by an amount equal to the amount of gift-tax paid in respect of any such property under that Act." The asseesee paid a gift-tax of Rs. 3,200, and accordingly from the estate duty payable by him only Rs. 3,200 is to be deducted, In our opinion, the Tribunal took the correct view. We would accordingly answ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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