TMI Blog1993 (10) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... possible. The Estate Duty Act, 1953, was itself repealed in the year 1985. The question raised is, therefore, no longer of any general public importance. If two views are possible on the scope and construction of section 50B and one of them has appealed to, and been accepted by, the High Court and the view cannot also be said not to advance the cause of justice, there is hardly any justification to interfere where the Act itself has since ceased to exist. The question of law raised in the appeal is really sterile as it cannot arise hereafter. Appeal dismissed. - - - - - Dated:- 14-10-1993 - Judge(s) : S. C. AGARWAL., DR. A. S. ANAND ORDER This appeal by certificate by the Controller of Estate Duty directed against the order dated Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich bears to the total amount of tax so paid the same proportion as the amount paid towards estate duty out of the proceeds of the transfer bears to the gross proceeds of such transfer . . . ..." This claim for the refund based on this provision was refused by the Revenue. The Revenue, upon a strict and literal construction of section 50B, took the view that the payment of duty was, quite obviously, not directly out of the proceeds of the transfer of the shares as, indeed, the payment of duty was anterior to the transfer and that, therefore, the requirements of section 50B of the Act were not satisfied. The contention of the respondent, however, was that section 50B was a beneficial provision and required to be construed liberally and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of payment of estate duty, the whole or part of the proceeds of the transfer are paid 'towards the estate duty' within the meaning of the expression as used in section 50B of the Act. In that view of the matter, since on the materials on record, I am satisfied that the loan was taken by the accountable person (the petitioner) to pay the estate duty and property was transferred to liquidate the loan and tax had actually been paid in respect of the capital gains arising from such transfer, the petitioner is entitled to the reliefs as claimed." The Revenue assails the correctness of this view of the High Court. It is not disputed that the borrowing made by the accountable person was exclusively for the purpose of paying the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate from you according to section 56(2) of the Estate Duty Act. As such I request you to kindly issue a certificate under section 57(2) that the estate duty will be paid in respect of the property mentioned in the certificate." In the further communication dated January 18, 1973, from the Controller of Estate Duty to the accountable person, it was stated : "It is hereby certified that the estate duty payable on provisional assessment under sub-section (1) of section 57 of the Estate Duty Act, 1953, will be paid or that no estate duty is due in respect of the property hereinafter described as passing on the death of Sir J. J. Gandhi of Jamshedpur who died on the seventh day of April, 1972." It is, therefore, clear that the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd accepted by the High Court, in our opinion, is an eminently arguable one, though another view may also be possible. The Estate Duty Act, 1953, was itself repealed in the year 1985. The question raised is, therefore, no longer of any general public importance. If two views are possible on the scope and construction of section 50B and one of them has appealed to, and been accepted by, the High Court and the view cannot also be said not to advance the cause of justice, there is hardly any justification to interfere where the Act itself has since ceased to exist. The question of law raised in the appeal is really sterile as it cannot arise hereafter. In CST v. S. K. Manekia [1991] 83 STC 34 (SC), dealing with an analogous situation, this cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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