9911796707
TMI Blog2004 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... from Avas Avam Vikas Parishad under the hire purchase tenancy agreement was required to be estimated on the basis of instalment actually paid by the deceased?" Briefly stated the facts giving rise to the present reference are as follows: Shri Ram Lal Agarwal died intestate on June 19, 1978. His son, Shri Ravinder Kumar Agarwal, is the accountable person in this case. The deceased had taken a house from U.P. Avas Avam Vikas Parishad under a hire purchase tenancy agreement for a sum of Rs. 58,000 on instalment basis. The deceased could pay only one instalment of Rs. 2,650 for this house and the balance of Rs. 55,350 was outstanding against him at the time of his death to be payable to Avas Avam Vikas Parishad. The accountable person claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -assessee accountable person. Learned counsel for the Revenue submitted that under section 33(1)(n) of the Act exemption has been provided in respect of one house or part thereof exclusively used by the deceased for his residence to the extent the principal value thereof does not exceed Rs. 1,00,000 where it is situated in a place with a population exceeding ten thousand and the full principal value thereof in any other case. He submitted that the deceased was not the owner of the house in question as there was only a hire purchase agreement in which it has been specifically provided that the position of the deceased was that of a tenant and after all instalments are paid the ownership shall be transferred. According to him, the unpaid ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase period provided that he has paid all the dues of the owner and of public bodies if any prior to such execution. The hire purchaser thereafter ceases to be a tenant and becomes the owner of the property subject to the provisions of the conveyance deed to be executed as provided in para. 5." Thus, from a reading of the aforesaid clause of the hire purchase agreement it is clear that the deceased was not the owner of the house in question and his possession was only that of a tenant till he had paid all the instalments and a conveyance deed had been executed in his favour by the U.P. Avas Avam Vikas Parishad. Section 33 of the Act provides exemption in respect of the property belonging to the deceased. Clause (n) of sub-section (1) of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit and taken effect out of his interest, or (b) for any debt in respect whereof there is right to reimbursement from any other estate or person, unless such reimbursement cannot be obtained, or (c) more than once for the same debt or incumbrance charged upon different portions of the estate, or (d) for debts incurred by or on behalf of the deceased by way of dower, to the extent to which such debts are in excess of rupees five thousand, and any debt or incumbrance for which an allowance is made shall be deducted from the value of the property liable thereto. Explanation. - For the purposes of this section, 'funeral expenses' include all expenses which may have to be incurred in connection with the sraddha or barsi ceremonies of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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