TMI Blog1979 (9) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and in the circumstances of the case, the Tribunal was correct in confirming the order of the Appellate Controller directing the Assistant Controller to re-do the assessment after providing full opportunity of hearing to the karta of the HUF also? " The dispute relates to the estate of the deceased, Shyam Hari Singhania, who died on the 3rd December, 1960. At the time of his death he owned separate and self-acquired property, and was also a member of a HUF of of which Sir Padampat Singhania, his father, was the karta. Shyam Hari Singhania had no issue, and left behind him a widow, Smt. Usha Devi, and his mother, Lady Ansuiya Devi (class I heirs under the Hindu Succession Act). On the 1st August, 1961, Lady Ansuiya Devi filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased. It was also contended that the AAC erred in sending back the case for starting proceedings against Sir Padampat Singhania as karta of the HUF as proceedings against him could not be started after the expiry of five years as set down in s. 73A. Both these contentions have been rejected by the Tribunal. We will deal with the questions seriatim. It is necessary to extract s. 73A in order to answer the first question. This provision is couched in the following terms : " No proceedings for the levy of any estate duty under this Act shall be commenced-- (a) in the case of a first assessment, after the expiration of five years from the date of death of the deceased in respect of whose property estate duty became payable ; and (b) in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case, however, we think that it is not necessary to decide the question as to when proceedings for levy of estate duty commence under the E.D. Act, for reasons to be stated hereafter. As noticed earlier, Smt. Usha Devi filed a return on 16th August, 1963, in response to a request made by the department. Although the provision under which the request was made to Smt. Usha Devi has not been stated in the order of the Tribunal or the Appellate Controller, it is apparent that such a request could be made only under s. 55, for, it is under this provision that the Controller can ask an accountable person, and certain other categories of persons to deliver a statement of particulars and accounts, etc., which may be required by the Control ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven by the Assistant Controller to Sir Padampat Singhania who was the karta of the HUF when the assessment order was made, the appellate authority could not remand the matter for starting proceedings for assessment against Sir Padampat Singhania. It was urged that such an order would be hit by s. 73A, for it would amount to starting proceedings for assessment against the karta of the HUF after the expiry of five years from the date of death of Shyam Hari Singhania. This contention is misconceived. In the first place, although s. 53(3) of the Act requires every person accountable for estate duty of the deceased to deliver to the Controller, an account in the prescribed manner of all the properties of the deceased, yet the proceedings for le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersons, and on such an order being passed not only the accountable person in respect of whom proceedings for assessment had been taken but also every other accountable person would be liable to pay the amount of estate duty limited to the assets of the deceased which each of the other accountable person has received. Thus , on the assessment order being passed by the Assistant Controller on the basis of the valuations given by the two ladies, Sir Padampat Singhania also became liable for payment of the estate duty qua the share of Shyam Hari Singhania in the assets of the HUF. This being the position and as no opportunity had been given by the Assistant Controller while making the final assessment, although in view of the pronouncement of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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