TMI Blog1989 (6) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5,15,678. During the assessment proceedings, the accountable person had claimed deduction of estate duty liability from the total estate for determining the estate duty payable. The Assistant Controller of Estate Duty disallowed the claim. On appeal, the Appellate Controller of Estate Duty allowed the claim of Rs. 90,186.50. However, the Appellate Tribunal reversed the order of the Appellate Controller of Estate Duty and disallowed the deduction of estate duty liability from the total estate. Section 44 of the Act provides that, in determining the value of an estate for the purpose of estate duty, certain debts and incumbrances shall be allowed as deduction. The question, therefore, is whether estate duty payable under the Estate Duty Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty shall be the first charge on the immovable property passing on the death of the deceased. It also provides that the first charge must rank in priority after the debts and encumbrances allowable under Part VI of the Act. If it ranks in priority after the debts and incumbrances allowable under section 44, then, it cannot form part of those debts and incumbrances after which it ranks in priority. We may also add that, in the United Kingdom, since the imposition of estate duty in 1894, it was never contended that duty is liable to be deducted in determining the principal value of the estate of a deceased person. All the reported judgments of our High Courts have unanimously taken the view that estate duty. is neither a debt nor an incumbr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After the judgment is pronounced, Mr. Y. Ratnakar, learned counsel for the petitioner, made a request for grant of a certificate to appeal to the Supreme Court. Questions Nos. 5 and 6 were answered against the accountable persons following the judgments of this court in CED v. Estate of Late Omprakash Bajaj [1977] 110 ITR 263 (AP) and CIT v. Barkat Ali Khan [1974] TLR 90 (AP). It is represented by learned counsel that leave was granted against the decision in those two cases and appeals are pending in the Supreme Court. In view of this, we grant a certificate in this case also in respect of all the questions." Since the identical question is pending before the Supreme Court on the certificates granted by the Andhra Pradesh High Court, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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