9911796707
TMI Blog1993 (10) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... dhi was the accountable person. A sum of Rs. 3,16, 026 was determined as the provisional duty. The accountable person having had no immediate cash to meet the demand for provisional duty, borrowed on December 27, 1972, sums aggregating to Rs. 3,36,000 out of which the provisional duty of Rs. 3,16,026 was paid on March 23, 1973. On April 10, 1974, she sold certain shares forming part of the estate to discharge the said borrowings. Indeed, the sale was made to the lender from whom the major borrowing had been made. Upon the sale of the shares, she became liable to pay capital gains in the sum of Rs. 90,158 which she duly paid. Basing on the provisions of section 50B of the Act, she claimed to be entitled to a rebate respecting this payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The refusal by the Revenue to grant the rebate was assailed in the writ petition before the High Court. The High Court, by its order dated August 17, 1978, accepted the contention of the respondent and held : ". . . . The second construction does not do violence to the words used in section 50B because the section requires payment 'towards the estate duty' and not payment 'as estate duty' and the section does not use the expression 'directly paid' ; but only 'paid' towards estate duty and thus does not rule out indirect payment of estate duty out of the proceeds of the transfer. According to the dictionary meaning, 'towards' means 'in relation to' or 'for the purpose of'. A payment made for liquidating a debt incurred solely for payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritten me to convey to you that the payment of estate duty demand should be made by disposing of the shares in the market through brokers or banks by you. The share scrips at present cannot be accepted under section 52 of the Estate Duty Act. Therefore, you are requested to dispose of the shares or whatever property you deem fit for payment of estate duty. The payment of provisional demand must be made before 15th March, 1973, under intimation to me. " In response to the communication, the accountable person wrote as under : " With reference to your Memo No. J-47/730 of December 27, 1972, I am to, state that section 52 of the Estate Duty Act clearly states that payment of duty can be made by transfer of property in favour of the Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision knows no equity and would be strictly construed according to the words used. Learned counsel emphasised that the words "out of the proceeds of transfer" would clearly exclude from section 50B, a case such as the one in hand where the duty was paid out of the borrowing and not out of the proceeds of transfer, though the borrowing was later repaid by the proceeds of transfer. But, Sri Joseph Vellapally, learned senior counsel for the respondent, understandably, emphasised the significance of the words "paid towards estate duty" which, according to him, will take in a non-direct payment also where substantially, if not strictly chronologically, the proceeds of the transfer have gone "towards the duty". As to the requirement of a stric ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
