| Case ID |
422c63bc-959e-44e0-88a3-4feea401c033 |
| Body |
View case body. Login to View |
| Case Number |
D-2741 of 2016 |
| Decision Date |
Jan 01, 1990 |
| Hearing Date |
Jan 01, 1990 |
| Decision |
The court ruled that the income-tax refund of Rs. 13,39,859, which was payable to the deceased but received after his death, was not includible in the estate of the deceased for estate duty purposes. The court held that the right to claim a refund did not constitute property passing on death as the deceased did not have any right to claim the refund until the assessment was completed. The decision highlighted that mere expectation of a refund does not equate to actual property. The court emphasized that property must exist at the time of death and that the refund could only be determined post-assessment, which occurred after the death of the deceased. |
| Summary |
In the landmark case before the Bombay High Court, the issue revolved around whether an income-tax refund due to the deceased should be included in the estate for estate duty purposes. The case involved the Estate Duty Act, 1953, particularly sections concerning property passing on death. The deceased, General Sir Shankar S.S.J.B. Rana, had paid income tax in advance during his lifetime and died before the assessment was completed. Legal heirs filed the return after his death, leading to a refund claim. The court concluded that the refund was not property passing on death, as the right to claim it did not exist until the assessment was finalized. This case is significant for understanding the definitions of property within tax law and estate duties, making it a pivotal reference for similar issues in tax and estate law. It illustrates the complexities surrounding estate assessments and the timing of tax liabilities, which are crucial for legal practitioners and tax advisors. The ruling serves as a precedent in estate duty cases, particularly those involving refunds and claims posthumously. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
MRS. SUJATA MANOHAR,
T.D. SUGLA
|
| Lawyers |
S.E. Dastur,
I.M. Munim,
S.J. Mehta,
G.S. Jetly,
Mrs. Manjula Singh,
K.C. Sidhwa
|
| Petitioners |
Estate of Late Gen. Sir Shankar S.S.J.B. Rana
|
| Respondents |
Controller of Estate Duty
|
| Citations |
1990 SLD 2290,
(1990) 186 ITR 578
|
| Other Citations |
Prakash Cotton Mills (P.) Ltd. v. CIT [1979] 120 ITR 497 (Bom.),
CWT v. Standard Vacuum Oil Co. Ltd [1966] 59 ITR 569 (SC),
M.Ct. Muthiah v. CED [1986] 161 ITR 768/27 Taxman 342 (SC),
CED v. Kasturi Lal Jain [1974] 93 ITR 435 (J&K),
CWT v. Arvindbhai Chinubhai [1982] 133 ITR 800 (Guj.),
CIT v. Rangnath Bangur [1985] 152 ITR 71 (Raj.),
Assam Oil Co. Ltd. v. CWT [1966] 60 ITR 267 (SC),
TV. Srinivasan v. CWT [1985] 152 ITR 599/22 Taxman 545 (Mad.),
Fazalbhoy Investment Co. (P.) Ltd. v. CIT [1989] 176 ITR 523/42 Taxman 22 (Bom.),
Her Highness Setu Parvati Bayi, Maharani of Travancore v. CWT [1988] 170 ITR 197 (Ker.),
Smt. Sheila Prasad v. CED [1983] 142 ITR 315 (All.),
CED v. Maharani Raj Laxmi Devi [1987] 168 ITR 389/31 Taxman 206 (All.),
Dewan Labh Chand v. CED [1972] 83 ITR 538 (Delhi) (FB),
M. Lakshmamma v. CED [1964] 53 ITR (ED) 20 (Mys.),
Mrs. Khorshed Shapoor Chenai v. ACED [1980] 122 ITR 21 (SC)
|
| Laws Involved |
Estate Duty Act, 1953
|
| Sections |
5,
2(16)
|