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TMI Blog1983 (11) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, the above said question does not call for any reference as reply to the same is self-evident and the question proposed by the Revenue is misconceived. 2. Late Lalit Bhatia was employed in the Air Force, Government of India, whose specified members of the family got a sum of Rs. 1 lakh on the death of Lalit Bhatia in an air crash. The Asstt. Controller subjected the said amount of Rs. 1 lakh to levy of estate duty. When the issue at the instance of the Accountable Person was carried before the Controller, action of the Asstt. Controller came to be confirmed and the contentions of the Accountable Persons were rejected. 3. When the issue in second appeal of the Accountable Person was carried before the Tribunal, the Tribunal concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it and for what duration, etc. will be decided by the respective Service Headquarters in case of Servicemen and by the Ministry of Defence in cases of Civilians paid from Defence Services Estimates. 3. The ex gratia payments in question will be in addition to the special family pensionary awards/widow's pension etc. under C.C.S. (EOP) Rules, as admissible. The payment in each case will be sanctioned with the concurrence of Ministry of Finance (Defence). 4. The above orders will take effect from 1st Nov., 1977. 5. This issues with the concurrence of the Ministry of Finance (Defence) vide their UO No. 108/S/P3n of 1983". "From the above order, it is clear that it is an ex gratia payment. Ex gratia as per Oxford Dictionary, means as an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to his heirs within the meaning of s. 5 of the EC Act. In that case, it was further observed that if at all the property passed, it passed directly from the Indian Airlines Corporation to the family of the deceased. The AP High Court while following the said decision, as per its head note, held as under: "Held, that r. 73 made it clear that in the event of the death of an employee by an accident, the Corporation might pay compensation to the legal representatives of the deceased at such rates and on such conditions as it might lay down from time to time, unless such accident, loss or damage is attributable to his own negligence or breach of instructions. The payment of compensation was discretionary and was dependent on satisfaction of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent has not to be made. Hence, the compensation is not property capable of passing on death'. In this case, their Lordships extracted and placed ss. 2(15) and 2(16) of the Estate Duty Act and following the J&K High Court decision, referred to above, held the view against the Revenue. Exclusion of Rs. 1 lakh, therefore, from the dutiable estate is hereby ordered". 4. From the above finding, it is clear that the Tribunal relied on the Punjab and Haryana High Court decision, on the one hand, and on the other hand, relied on the Government of India's letter on the subject of ex gratia payment to the families of personnel travelling by air and dying as a result of death in air crash. The fact that the payment was made to specified members of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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