TMI Blog1970 (2) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... section 52 of the Estate Duty Act and by an order dated 11th March, 1935, a provisional assessment for a sum of Rs. 42,387 on account of estate duty was made. The payment was required to be made on 25th March, 1955. By a letter dated 25th March, 1955, Smt. Mohini Debi prayed for extension of the time to pay such demand. No reply it is alleged of the said letter was given by the revenue authority. On 23rd March, 1936, the Deputy Controller of Estate Duty demanded payment of the estate duty by 28th March, 1936, and by the said letter it was stated that unless the payment is made by March 28, 1956, interest and penalty may be imposed for the default. Thereafter, various letters were written by the revenue authorities to the said Mohini Debi fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een 26 March, 1955, and the 30th December, 1964, alleging that interest under section 70 of the Estate Duty Act is, payable by the petitioner and a recovery certificate No. 1637 was issued against the petitioner. The petitioner objected to the said demand and moved this court and obtained the rule. Mr. D. K. De appearing for the petitioner contended that unless an order is made under section 70 of the Estate Duty Act, 1953, imposing interest, no interest can be demanded by the revenue authority and as such the demand of Rs. 10,000 and odd being the interest payable on the provisional assessment is without jurisdiction and illegal. Mr. De argued that no order was, made imposing the demand of interest. In fact the revenue authorities only t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed at once, he may allow payment to be postponed for such period, to such extent, and on payment of such interest not exceeding four per cent. or any higher interest yielded by the property, and on such other terms as he may think fit. (2) Notwithstanding anything contained in sub-section (1), estate duty in respect of immovable property may at the option of the person accountable be paid in four equal yearly in3talments or eight equal half-yearly instalments with interest at the rate of four per cent. per annum or any higher interest yielded by the property from the date on which the first instalment is payable and the interest on the unpaid portion of the duty shall be added to each instalment and paid accordingly ; but the duty for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioners think fit. " The U. K. Finance Act of 1894, makes a provision for imposing interest on the property on which the estate duty is leviable at the rate of 3% per annum in section 6(6) of the Finance Act of 1894. It is provided in section 8(9) of the said Act that the Commissioners may allow payment to be postponed for such period and on payment of interest not exceeding 4% and on such other terms if the Commissioners are satisfied that the estate duty leviable cannot be immediately raised without excessive sacrifice. The only difference between section 8, sub-section (9), of the Finance Act of 1894, and section 70 of the Estate Duty Act is that whereas in the Finance Act the authority is a Commissioner, in the Estate Duty Act of 1953 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e commissioners must be satisfied that the estate duty leviable in respect of the property cannot be raised at once without excessive sacrifice before allowing the payment of duty postponed. In any case under the English Act the interest at the rate of 3% will run on the duty under the provision of section 6(6) of the Act. In the Estate Duty Act of 1953, however, there is no provision for running of interest as provided in the English Act and as such unless an order is made under section 70 of the Act, in my opinion, the interest does not run on the assessed duty. In the present case the order for interest was made after all the demands of the estate duty was realised and in fact refund to the extent of Rs. 24,000 had to be made by the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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