| Case ID |
038db27e-d8c8-4e99-95ee-5237093f61f9 |
| Body |
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| Case Number |
29963 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the right of residence free of rent in a property can be treated as an interest in property which ceases on the death of the deceased. However, despite the cesser of such interest, the benefit arising therefrom is not exigible to estate duty if it is not capable of valuation under section 40. The deceased had an interest in the property that ceased upon the death of the widow, but the benefit that arose was not capable of valuation, hence, not liable to estate duty. The court emphasized the importance of the capacity of the interest to yield income for establishing liability under the Estate Duty Act. |
| Summary |
This case revolves around the interpretation of the Estate Duty Act, 1953, specifically concerning the valuation of interests that cease upon death. The primary issue examined was whether the deceased's right of residence, which was free of rent, constituted an interest in property that could be charged with estate duty upon the death of the widow. The court concluded that while the right of residence was indeed an interest, the benefit arising from its cesser was not liable for estate duty due to its incapacity for valuation under section 40. This case highlights the nuances of property rights and valuation in estate duty assessments, making it a pivotal reference for similar future cases. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
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| Judges |
M.N. Chandurkar,
M.H. Kania
|
| Lawyers |
R.J. Kolah,
S.E. Dastur,
C.N. Mistry,
R.J. Joshi,
R.L. Buiani
|
| Petitioners |
D.J. Gazdar
|
| Respondents |
Controller of Estate Duty
|
| Citations |
1982 SLD 1322 = (1982) 138 ITR 607
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| Other Citations |
Smt. Mrudula Nareshchandra v. CED [1975] 100 ITR 297 (Guj.),
CED v. Fakirchand Fatehchand Sachdev [1982] 134 ITR 268 (Bom.),
Manian Natesan v. CED [1965] 56 ITR (ED) 5 (Mad.)
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| Laws Involved |
Estate Duty Act, 1953
|
| Sections |
7(1),
40
|