Controller of Estate Duty vs Smt. Sita Devi

G.S. Singhvi, J.—Smt. Sita Devi, accountable person of her husband, the late Shri Dev Raj, filed the account of the estate on December 21, 1972, and declared its value at Rs. 3,49,645. By an order dated June 23, 1977, the Assistant Controller of Estate Duty, Jalandhar, determined the value of the estate at Rs. 4,24,921. The Assistant Controller did not allow the deduction of Rs. 40,000 in respect of the provision of marriage expenses of the unmarried daughter of the late Shri Dev Raj and Smt. Sita Devi. The Appellate Controller of Estate Duty, before whom an appeal was filed by the accountable person, accepted the appeal and allowed the deduction of Rs. 40,000. This has been affirmed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar. Thereafter, the Controller of Estate Duty, Jalandhar, filed an application u/s 64(1) of the Estate Duty Act, 1953, and requested the Tribunal to refer the question of law relating to the deduction of Rs. 40,000 in respect of the marriage expenses of unmarried daughter. Dismissal of the request by the Tribunal of the petition filed u/s 64(1) has led to the filing of this petition u/s 64(3) of the Estate Duty Act.

We have heard Shri Gupta, learned counsel for the petitioner, and have perused the record of the case. Learned counsel submitted that the question sought for by the petitioner has not been decided by this court in any other petition and there is no judgment of the Supreme Court dealing with the issue. On that premise, he submitted that the question framed by the petitioner deserves to be adjudicated by this court.

In our opinion, the question framed by the petitioner is an important question of law which requires to be determined by this court. Therefore, we accept this petition and direct the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, to draw up a statement of case and refer the following question of law to this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the accountable person is entitled to get deduction of Rs. 40,000 in respect of marriage expenses of unmarried daughter ?"

The Tribunal is directed to remit the record of the case of this court at an early date.