 the estate duty (amendment) bill, 1958(as introduced in lox samia)  the estatelduty(amendment) bill, 1958 (as introduced in lok sabhta) a bill further to amend the estate duty act, 1953be it enacted by parliament in the ninth year of the republic of india as follows:-1 (1) this act may be called th'e estate duty (amendment) act, short title 1958 ::n:  s (2) it shall come into force on the 1st day of april, 1958 34 or 19'3· 2 in section 2 of the estate duty act, 1953 (hereinafter referred amendmedt to as the principal act),-ollec'tioil a (a) after clause (1), the following clauses shall be inserted, namely:-10 '(1a) "appellate controller" means a person appointed ii of 1922 ,15 to be an appellate controller of est~te duty under section 4; (1b) "appellate tribunal" means the appellate tribunal appointed under section 5a of the indian income-tax act, 1~22;'; (b) after clause (12), the following clause shall be inserted, namely:-'(12a) "person accountable" or "accountable person" means the person accountable for estate duty within the meaing of this act;'; (c) after clause (14), the following clause shall be inserted, namely:--'(14a) "principal officer", in relation to a company or a corporation established by a central, state or provincial amendment of eection 4· act, means the manager, m 'naging direclor, managing agent or secretary, and includes any person connected with the management of the company or corporation upon whom the controller has served a notice of his intention of treating him as the principal officer for the purposes of this 5 act;' 3 in section 4 of the principal act,-(a) in sub-section (1), after clause (b), the following clause shall be inserted, namely:-"(bb) appellate controllers of estate duty,"; 10 (b) after sub-section (2), the following sub-section shall be inserted, namely:-"(2a) the central government may appoint as many appellate controllers of estate duty as it thinks fit and they shall, subject to the control of the board, perform their is functions in respect of such estates or classes of estates or such areas as the board may direct, and where such directions have assigned to two or more appellate controllers the same estate or classes of, estate or the same area, they shall perform their functions in accordance with any orders 20 which the board may make for the distribution and allocation of the work to be performed"; ,(c) to sub-section (5), the following proviso shall be added, namely:-"provided that no such orders, instructions or directions 2s shall be given by the board so as to interfere with the discretion of the appellate controller of estate duty in the exercise of his appellate functions" t in section 9 of the principal act,- amendment of section 9(a) in sub-section (1), for the words "two years", the words 30 "five years" shall ,be substituted; (b) for sub-section (2), the following sub-section shall be substituted, namely:-"(2) the provisions of sub-section (1) shall not apply to-35 (a) gifts made in consideration ot marriage, subject to a maximum of,rupees ten thousand in value; (b) gifts which are proved to the satisfaction of the controller to have been part of the normal expenditure of the deceased, subject to a maximum of rupees ten 40 thousand in value" •• in section 10 of the principal act, in the proviso, for the worda amen~ent  of seetlod "two years", the words "five years" shall be substituted 10 6 in section 11 of the principal act, in sub-section (2), for the amendment words "two years", in both the places where they occur, the words ~~aectiod 5 "five years" shall be substituted 7 in section 12 of the principal act, in the proviso to sub-section amen~ent (1), for the words "two years", the words "five years" shall be ~ seetlon substituted 8 in section 16 of the prmcipal act, in clause (a) of sub-section amendment 10 (2), for the words "otherwise than for full consideration", the ~i secdod words "notwithstanding that the disposition was made for full consideration" shall be substituted 9 in section 17 of the principal act, in clause (vi) of sub-section amenlf:medt  of sec:non (4), for the word "even", the word "event" shall be substltuted 17  15 10 in section 18 of the principal act, the explanation shall be amendment omitted of section 18 20 11 in section 19 of the principal act,-amendment (a) in sub-section (2), for the words "outside the territories ~~8ection to which this act extends", the words "outside india" shall be substituted; 1 ::if 1956 i of r956 (b) in sub-section (4), for the words and figures "section 230 of the indian companies act, 1913 (vii of 1913),' and "section 129 of the indian companies act, 1913,", the following words and figures shall respectively be substituted, namely:-"section 530 of the companies act, 1956" and "section 123 of the companies act, 1956," 12 in part ii, after section 20 of, the principal act, the following insertion, of section shall be inserted, namely:-~: sect10n 30 if of 19zz 35 40 "20a where a company incorporated outside india which duty add carries on busil!ess in india has beea treated for the purposes ~~=i:af of the indian income-tax t\ct, 1922, as resident for two out of inco!pod ri·!~ f h  ed' i outll e  the three completed assessments or t e years imm late y in certain preceding the date of death of any member of or debenture case • holder in the company, the company shall, within three months of the receipt of intimation of the death of the member or debenture holder, as the case may be, furnish to the controller such particulars as may be prescribed in respect of the interest of the deceased in the company, and the company shall be accountable for the estate duty which shall be levied at the rates mentioned in part ii of the second schedule on the principal value of the shares or debentures held by the deceased in amendment df aection 21 the company except in cases where the deceased was a pefsofl domiciled in india and the person accountable under any of the other provisions of this act has obtained a certificate from the controher showing that either the estate duty in respect thereof has been paid or will be paid or that none is due, as the 5 'case maybe" n in section 21 of the principal act, in sub-"section (1), for the words "outside the territories to which this act extends)' and "the said territories", wherever they occur, the words "outside india" and "india" shall respectively be substituted 10 14 in section 22 of the principal act,-amendmedt rillectiod 22 (a) for the words "two years", the words "five years" shall be substituted; and (b) the proviso shall be omitted amendmedt of icction 37· 15 in section 27 of the principal act, for the word and figure 15 "section 9" in both the p~aces where they occur, the words "this act" shall be substituted 16 in section 33 of the principal act, in sub-section (1),-amendment of lection 33· (a) in clause (a), for the words "under a gift", the words "under one or more gifts" shall be substituted; 20 (b) in clause (b), for th'e words "under a gift" and "two years", the words "under one or more gifts" and "five years" shall respectively be substituted; (c) in clause (k), for the words "rupees five thousand", the words "rupees ten thousand" shall be substituted 25 substitution 17 for section 34 of the principal act, the following section of dew lee- shall be substituted, nan:ely:-tioii·for 1ecti00 u aureadod "34 (1) for the purpose of determining the estate duty to ·be paid on any propertypassing on the death of the deceased,-(a) iii property so passing other than property exempt- 30 ed from estate duty under clauses (c), (d), (e), (i) and, (j) of sub-section (1) of section 33; (b) agricultural land so 'passing, if any, situate in any state not specified in the first schedule; and (c) in the case of property so passing which consists of 35 a coparcenary interest in the joint family property of a hindu family governed by the mitakshara, maromakkattayam or aliyasantana law, also the interests in the joint family property of all the lineal descendants of the deceased member; shall be aggregated so as to form one estate and estate duty' shall be levied thereon at the rate or rates applicable in respect of the principal value thereof (2) where any such estate as is referred to in sub-sectiool (1) includes any property exempt from estate duty, the- estate-10 duty leviable on the property not so ex'empt shall be an amount bearing to the total amount of duty whic~ would have been payable on the whole estate had no part of it been so exempt the same proportion as the value of the property not so exempt bears to the value of the whole estate 15 expzanation-for the purposes of this sub-sectiol1, "property exempt from estate duty" means any property-(i) which is exempt from estate duty under section 33; (ii) any agricultural land situate in any state not specified in the first schedule; 20 (iii) the interests of all coparceners other than the deceased in the joint family property of a hindu family governed by the mitakshara, marumakkattayam or aliyalantana law (3) notwithstanding anythin2 contained in sub-section (1, 25 or sub-section (2), any property passing in which the deceased never had an interest not bein2 a ri2ht or debt or benefit that is treated as property by virtue of the explanations to clause (15) of section 2 shall not be aggregated with any property, but shall be an estate by itself and tpe estate duty shall be 30 levied at the rate or rates applicable in respect of the principal value thereat (4) every estate shall include _all income accrued upon the property included therein down to and outstan4ing at the date of the death of the deceased 35 (5) for the purposes of this section, no property shall be' aggregated more than once nor shall estate duty in respect thereof be levied mot:e than once on the same death"  18 in section 35 of the principal act,-amendment ()f section 35· (a) for sub-section (1), the following sub-section shall be substituted, namely:-"(1) the rates of estate duty shall be as mentioned in the second schedule"; 5 (b) sub-section (2) shall be omitted amendment of section 47· 19 in section 47 of the principal act, for the words "out of the territories to which this act extends" and the words "the said territories" wherever taey occur, the words "out of india" and "india" shall respectively be substituted 10 amendment of sect:on 48 20 in section 48 of the principal act, for the words "out of the territories tn which this act extends", the words "out of india" shall be substituted amendment of section so 21 in section 50 of the principal act, for the words "an amount which is equal to", the words "an amount which is equal to one-hal! 15 of" shall be substituted 22 in part vi, after section 50 of the principll act, the following section shall be inserted, namely:-| insertion    ||--------------|| new section  || soa         || rei:ef from  || estate       || duly         || where gift-  || tax          || has          || been         || paid        |u50a where tax has been paid under the gift-tax act, 1958, in respect of a gift of any property and the property is also 20 included in the estate of the donor as property passing under this act, then, notwithstandmg anything contained in this act, no duty shall be levied under this act on any such property" 23 in section 53 of the principal act, for sub-section (3), the following sub-section shall be substituted, namely:-25 amendment of section 53· "(3) every person accountable for estate duty under this section shall, within six months of the death of the deceased, deliver to the controller an account in the prescribed form and verified in the prescribed manner of all the prop~rties in respect of which estate duty is payabl,e: 30 provided that the controller may extend the period of six months aforesaid on such terms which may incluae payment ~f interest as may be prescribed," 24 for sections 56, 57, 58, 59, 60, 61, 62, 63, 64 and 65 of the 8fubatitution  0 new secprincipal act, the following sections shall be substituted, namely: -tions for sectiodss6 t065 "56 (1) in all cases in which a grant of representation applied for-5 7 of 1870 is grant of representation, etc, - ~m~ (a) the executor of the deceased shall, to the best of made unless his knowledge and belief, specify in an appropriate account ~r:~~hed annexed to the affidavit of valuation filed in court under to the con-11   troller section 19-1 of the court-fees act, 1870, a the property m respect of which estate duty is payable upon the death of the deceased and shall deliver a copy of the affidavit with the account to the controller, and (b) no order entitling the applicant to the grant of representation shall be made upon his application until he has delivered the account prescribed in clause (a) and has produced a certificate from the controller under sub-section (2) of section 57 or section 67 that the estate duty payable in respect of the property included in the account has been or will be paid, or that none is due, a!'; the case may be (2) in all cases in which a grant of a succession certificate is ~o applied for, a copy of the application shall be furnished by the applicant to the controller and no order entitling the applicant to the grant of such a certificate shall be made upon his application until he has produced a certificate from the controller under sub-section (2) of section 57 or section 67 that the estate duty zs payable in respect of the property mentioned in the application has been or will be paid, or that none is due, as the case may be  30 3s 57 (1) estate duty shall be due from the date of ·the death power t    make proof the deceased and the controller may, at any time after the visional receipt of account delivered under section 53 ot section 56, :s~d:~~! proceed to make in a summary manner a provisional assessment of regular of the estate duty payable by the person delivering the account assess:neoi on the basis of the account so delivered (2) upon delivery of the account under section 53 or section 56, the person delivering it shall pay to the controller, or furnish security to the satisfaction of the controller for the payment of, the estate duty if any, payable on th? provisional assessment made under sub-section (1), and the contro'ler shall thereupon f!rant him a certificate that such duty has been or will be paid or that none is due, as the case may be in respect of the property mentioned in the certificate  (3) after regular assessment has been made under section 58 any amount paid towards the provisional assessment made under sub-section (1) shall be deemed to have been paid towards ~ the regular assessment (4) no appeal shall lie against a provisional assessment made s under sub-section (1), but nothing done or suffered by reason or in consequence of any such provisional assessment shall prejudice the determination on the merits of any issue which may arise in the course of the regular assessment under section 58 aslesament 58 (1) if the controller is satisfied without requiring the 10 'presence of the person accountable that an account delivered under section 53 or section 56 is correct and complete, he shall assess the principal value of the estate of the deceased and shall determine the amount payable as estate duty (2) if the controller is not so satisfied he shall serve a notice j 5 on the person accountable either to attend in person at his office on a date to be specified in the notice or to produce, or cause to be produced on that date, any evidence on which the person accountable may rely in support of his account (3) the controller, after hearin~ such evidence as the person 20 accountable may produce and s'lch other evidence as he may require on any specified points, shall, by order in writing, asses; the' principal value of the estate of the deceased and determinc' the amount payable as estate duty (4) in any case where no account has been delivered as re- 25 quired by section 53 or section 56, or the person accountable faile; to comply with the terms of the notice served under sub-section (2), the controller shall make the assessment to the best of hie; judgment and determine the amount payable as estate duty  59 if the controller,-property olc8piugu--ment '(a) has reason to believe that by reason of the omission or failure on the part of the person accountable to submit an account of the estate of the deceased under section 53 or section 56 or to disclose fully and truly all material facts necessary for assessment, any property chargeable to estate 35 duty has escaped assessment by reason of under-valuation of the property included in theaccount or of omission to include therein any property which ought tl') have been included ot of assessment at too iowa rate or otherwise or s (b) has, in consequence of any information in his possession, reason to believe notwithstanding that there has not been such omission or failure as is referred to in clause (0) that any property chargeable to estate duty has escaped assessment, whether by reason of undervaluation of the property included in the account or of omission to include therein any property which ought to have been included, or of assessment at too iowa rate or otherwise, 10 he may at any time require the person accountable to submit an account as required under section 53 and may proceed to assess or re-assess such property as if the provisions of section 58 applied thereto is 60 (1) if ijle controller, the appellate controller or the penalty rm appellate tribunal, in the course of any proceedings under this coocealmad act, is satisfied that any person-20 (a) has without reasonable cause failed to furnish the account of the property of the deceased which he is required to furnish under section 53, section 55, section 56 or section 5~ or has without reasonable cause failed to furnish it within the time allowed and in the manner required; or (b) has without reasonable cause failed to comply with a notice under sub-section (2) of section 58; or (c) has concealed the particulars of the property of the deceased or deliberately furnished inaccurate particulars thereof; or  (d) being a company referred to in section 20a, fails without reasonable cause, to pay the amount of estate duty due from the company under that section within the time specified in this behalf, 30 he or it may, by order in writin" direct that-such person shall pay by way of penalty-35 (i) in the case referred to in clause (a) or clause (d), in addition to the amount of the estate duty payable by him, a sum of rupees one thousand or a sum equal to double the amount of such duty, whichever is greater; and (ii) in the case referred to in clause (b) or clause (c), in addition to the amount of estate duty payable by him, a sum equal to double the amount of the estate duty, if ar,y, which would havebeen avoided if the principal value shown in the account of such person had been accepted as correct (2) no order shall be made under sub-section (1) unless the person concerned has been given a reasonable opportunity of 5 being heard rectification of mistakes 61 at any time within five years from the date of any order passed by him or it, the controller, the appellate controller, or the appellate tribunal may, on his or its own motion rectify any mistake apparent from the record and shall, within a like period 10 rectify any such mistake which has been brought to the notic;e of the controller, the appellate controller or the appellate tri~ bunal, as the case may be, by the person accfountable: provided that no such rectification shall be made which has the effect of enhancing the estate duty payable unless the person 15 accountable has been given a reasonable opportunity of being heard in the matter 62 (1) any person-(a) objecting-:= orders of controller (i) to any valuation made by the controller, or 20 (ii) to any order made by the controller determining the estate duty payable under section 58 or section 59, or (iii) to any penalty levied by the controller under section 60 or section 84, or 25 (b) denying his liability to the amount of estate duty payable in respect of any property, may, within thirty days of the date of the receipt of the notice' of demand under section 73, appeal to the appellate controller in the prescribed form which shall be verified in the prescribed 30 manner (2) the appellate controller may admit an appeal after the expiry oflthe thirty days referred to in sub-section (1) if he is satisfied that there was sufficient cause for not presenting it within that period' 35 (3) the appellate controller shall fix a day and place fot  the hearing of the appeal and may from time to time adjourn the hearing (4) the appellate controller may-(a) at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal; - s (b) before disposing of an appeal, make such further inquiry as he thinks fit or cause further inquiry to be made by the controller (5) in disposing of an appeal, the appellate controller may pass such order as he thinks fit which may include an order 10 enhancing the estate duty or penalty: provided that no order enhancing the estate duty payable or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against sucll enhancement 15 (6) the appellate controller shall, on the conclusion of the appeal, communicate the order passed by him to the appellant and to the controller 63 (1) any person accountable objecting to any order passed ~pjf:d by an appellate controller under section 62, may appeal to the late ~bu­appellate tribunal within sixty days of the date on which he:! =rer is served with notice of such order of the appellate cod-(2) the controller may, if he is not satisfied as to the correct- troller ness of any order passed by the appellate controller under section 62, appeal to the appellate tribunal against such order and 25 such appeal may be made at any time before the expiry of sixty days of the date on which the order is communicated to the controller (3) the tribunal may adrrit an appeal after the expiry of the sixty days referred to in sub-sections (1) and (2) if it is 30 satisfied that there was sufficient cause for not presentinq it within that period (4) an appeal to the appellate tribunal shall be in the prescribed form and shall be verified in the prescribed manner aj'ld shall, except in the case of an appeal under sub-section (2) - - 3s be accompanied by a fee of rupees one hundred (5) the appellate tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such order thereocn as it thinks fit, and any such orders may include an order enhancing the estate duty payable or penalty: provided that no order enhancing the estate duty payable or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause againc;t 5 such enhancement (6) where the appellant objects to the valuation of any property, the appellate tribunal may, and if the appellant so requires, shall refer the question of disputed value to the arbitration of two valuers, one of whom shall be nominated by the 10 appellant and the other by the respondent, and the tribunal shall, so far as that question is concerned, pass its orders under tub-section (5) conformably to the decision of the valuers: provided that if there is a difference of opinion betwet:n the two valuers, the matter shall be referred to a third valuer ncmi- is nated by agreement, or failing agreement, by the appellate tribunal, and the decision of that valuer on the question of valuation shall be final (7) the costs of any arbitration proceeding under sub-c;ection (6) shall be borne by the central government or the pt'rson 20 accountable, as the case may be, at whose instance the question was referred to the valuers: provided that where the person accountable has been wholly or partially successful in any reference made at his instance, the extent to which the costs shall be borne by him shall be' at ~he 25 discretion of the appellate tribunal (8) the valuers may, in disposing of any matter referred to them for arbitration under sub-~ection (6), hold or caus(' to be held such inquiry as they think fit, and after giving the appellant and the respondent an opportunity of being heard, phc;s s1tch 30 orders thereon as they think fit and shall send a copy ~f such order to the appellate tribunal (9) a copy of every order passed by the appellate tribunal under this section shall be forwarded to the person accountable and to the controller 35 (10) save as provided in section 64 any order passe::j by the appellate tribunal on appeal shall be final (11) the provisions of sub-sedions (5), (7) and (8) of section 5a of the indian income-tax act, 1922, shall apply tc the' appel-ii of i9:lz late tribunal in the discharge of its functions under this act as 40 they apply to it in the discharge of its functions under thlt act 64 (1) within ninety days of the date upon which he is reference  bl to the hilh served with an order under section 63, the person accounta ~ or court 5 the controller may present an application in the prescribed form and, where the application is by the person accountjble accompanied by a fee of one hundred rupees to the appellate tribunal requiring the appellate tribunal to refer to the high court any question of law arising out of such order, and the appellate 10 tribunal shall, if in its opinion a question of law arises out of such order, state the case for the opinion of the high court (2) an application under sub-section (1) may be admitted after the expiry of the period of ninety days aforesaid if the appellate tribunal is satisfied that there was suffcient cause is for not presenting it within the said period (3) if, on an application made under sub-section (1), tbe appellate tribunal,-(a) refuses to state a case on the ground that no question of law arises; or 20 (b) rejects it on the ground that it is time-barred; the applicant may, within three months from the date on which he is served with a notice of refusal or rejection 'ls the case may be, apply to the high court, and the high colrt nay, if it is not satisfied with the correctness of the decision of the ~s appellate tribunal, require the appellate tribunal to state the case to the high court, and on receipt of such requisition the appellate tribunal shall state the case: provided that if in any case where the appellate tribunal has been required by a person accountable to stale a case the 30 appellate tribunal refuses to do so on the ground tnat no question of law arises, the person accountable may, within thirty days from the date on which he receives notice of refusal to state the case, withdraw the application, and if he does so, the fee paid by him under sub-section (1) shall be refunded to him 35 (4) the statement to the high court shall set forth the facts, the determination of the appellate tribunal and the question of law which arises out of the case (5) if the high court is not satisfied that the case as stated is sufficient to enable it to determine the question of law raised thereby, it may require the appellate tribun:ij, to make such modifications therein as it may direct (6) the high court upon hearing any 5uch case, shall decide the question of law raised thereby and in doing so, may, if it thinks fit, alter the form of the question of law and shall de'iver judgment thereon colltaining the ground on which such decision is founded and shall send a copy of the judgment uj'1der the l:it'al 5 of the court and the signature of the registrar to the appellate tribunal and the appellate tribunal shall pass such orders 3s are necessary to dispose of the case conformably to such judgment (7) where the amount of any assessment is reduced as a 10 result of any reference to the high court, the amount, if any, over-paid as estate duty shall be refunded with such interest as the controller may allow, unless the high court, on intimation being given by the controller within thirty day: of the receipt of the result of such reference that he intends to ask for 15 leave to appeal to the supreme court, makes an order authoric;-ing the controller to postpone payment of such refund until the disposal of the appeal in the supreme court (8) the costs of any reference to the high co~rt shall be 20 in the discretion of the high court (9) section 5 of the indian limitation act, 1908, :hdll apply 9 of 1908 to an application to the high court under this sectioll (10) when a case has been stated to the high court und"r this section, it shall be heard by a bench of not le;s than two judges of the high court and shall be decided in accordance 25 with the opinion of such judges or of the majority (if any) of such judges: provided that where there is no such majority, the judges shall state the point of law upon which they differ, and the case shall then b~ heard upon that point only by one or more of the 30 other judges of the high court, and such point shall be decided according to the opinion of the majority of the judges who have heard the case, including those who first heard it 65 (1) an appeal shall lie to the supreme court from any judgm~nt of the high court de1iv~red on a case stated under 35 section 64 in any case which the high court certifies as a fit case for appeal to the supreme court   (2) where the judgment of tne high court is varied or reverr-ed on appeal under this section, effect shall be given to tile order of the supreme court in the manner provided in sub-section (6) 40 of section 64 (3) the high court may, on application made to it for the execution of any order of the supreme court in respect of any costs awarded by it, transmit the order for execution to any court subordinate to the high court" s 25 for section 67 of the principal act, the following section shall s':!bstitutiol  at new becbe substituted, namely:-, tion for section 67 "67 where the amount of estate duty determined by the certificate of  paytnent of controller as payable on an assessment made under section 58 estate duty has been paid by the person accountable, the controller shall, 10 on application by that person, grant to him a certificate to that effect" 26 in section 70 of the principal act, in sub-section (2), for the amen~ent words "eight" and "sixteen" the words "three" and "six" shall of section , 7q· respec,tively be substituted 15 27 for section 73 of the principal act, the following sections substitutioc of new' 20 shall be substituted, namely: -sections for - section 73 "73 (1) when any estate duty, penalty or interest is due notice of  d d d h' a h c 11 demand and 10 consequence of any or er passe un er t is ct, t e ontro er recovery of shall serve upon the person accountable or other person liable dnatuty, pety, etc to pay such duty, penalty or interest a notice of demand in the prescribed form specifying the sum so payable and the time within which it shall be payable (2) any amount specified as payable in a notice of demand issued under sub-section (1) shall be paid within the time, at the place and to the person mentioned in the notice, or if no time is so mentioned, then on or before the first day of the second month following the date of service of the notice and any person accountable failing so to pay shall be deemed to be in default 30 35 (3) where a person accountable has been assessed in respect of assets located in a country outside india, the laws of which prohibit or restrict the remittance of money to india, the controller shall not treat the person accountable as in default in respect of that part of the estate duty which is attributable to the assets in that country, and shall continue to treat the person accountable as not in default in respect of that part of the duty until the prohibition or restriction of remittance is removed 5 (4) notwithstanding anything contained in this section, where the person accountable has presented an appeal under section 62 the controller may in his discretion treat the person accountable as not being in default as long as such appeal has not been disposed of 11 of 1922 (5) the provisions of sub-sections (1), (la), (2), (3), (4), (5), (sa), (6) and (7) of section 46 and section 47 of the indian income-tax act, 1922, shall apply as if the said provisions were provisions of this act and referred to estate duty (including estate duty provisionally assessed) and sums imposed by way 10 of penalty or interest under this act instead of to income-tax and sums imposed by way of penalty or interest under that act and to controller of estate duty instead of to income-tax officer 73a no proceedings for the levy of any estate duty under 15 this act shall be commenced-limitation for commencing procecdidgs for assessment or reassessment (a) in the cast! of 0 first assessment, after the expiration of five years from the date of death of the deceased in respect of whose property estate duty became payable; and (b) in the case of a re-assessment, after the expiration 20 ,of three years from the date of assessment of such property to estate duty under this act", amendmedt 28 in section 83 of the principal act, for clause (b) of the of section explanation, the following clause shall be substituted, namely:-83· '(b) "legal practitioner" means an advocate, vakil or 2~ attorney of any high court and includes a pleader in practice'  substitution 29 for section 84 of the principal act, the following section shall of dew sec- be substituted, namely:-tion for section 84-companies to furnish particulars of deceased persons to the controller "84 (1) where a company within the meaning of the i of 1956 companies act, 1956, has knowledge through any of its principal 30 officers of the death of any member of or debenture-holder in the company,-it shall, within three months of receipt of intimation of the death, furnish to the controller such particulars as may be prescribed in respect of th~ interest of the deceased in the company; and it shall not be lawful for the company to register 3 the transfer of any shares or debentures standing in the name 5 of the deceased unless the transferee has acquired such shares or debentures for valuable consideration or a certificate from the controller is produced before the company to the effect that, the estate duty in respect of such shares or debentures has been paid or will be paid or that none is due, as the case may be 5 (2) ·where a corporation established by a central, state or provincial act has knowledge through any of its principal officers of the death of any person who is a registered holder of stocks, shares or other securities in the corporation, it shall, within three months of the receipt of intimation of the death, furnish to the controller such particulars as may be prescribed in respect of the interest of the deceased in the corporation 10 (3) any company or corporation which without reasonable cause fails to comply with the provisions of this section shall be liable to pay a penalty of rupees one thousand" schedule 30 in the principal act, for the second schedule, the following amendmeot shd  ed of the c e ule shall be subsbtut ,namely: -second "the second schedule (see sections 5, 20a and 35)  rates of estate duty part iin the case of any property which passes or is deemed to pass 20 on the death of the deceased-rate of duty (i) on the first rs 50,000 of the principal value of the 35 estate nil (2) on the next rs 50,000 of the principal·value of the estate 6 per cent (3) on the next rs 50,000 of the principal value of the estate 8 per cent  (4fon the next rs 50,000 of the principar""value of the estate - 10 per cent (s) on the next rs 1,00,000 of the principal value of the estate  12 per cent (6) on the next rs 2,00,000 of the principal value of the estate  15 per cent (7) on the next rs 5,00,000 of the principal value of the estate  20 per cent (8) on the next rs 10,00,000 of the principal value of the estate  25 per cent (9) on the next rs 10,00,000 of the principal value of the estate  30 per cent (10) on the next rs 20,00,000 of the principal value of the - estate  35 per cent (ii) on the balance of the principal value of the estate  40 per cent: part ii in the case of shares or debentures held by the deceased in any such company as is referred to in section 20a-| rate          | of            | duty             ||---------------|---------------|------------------|| 5             |               |                  || (i)           |               |                  || if            |               |                  || the principal | value         | of the shares or || bentures does | not           | exceed rs 5,000 || nil          |               |                  || (2)           |               |                  || if            | the principal | value            || debent~       |               |                  || exceeds       | rb           |                  || 5,000         |               |                  || 71            |               |                  || per           |               |                  || cent"       |               |                  |sa1':lap 31 nothing contained in section 24 shall affect-10 (a) any appeal pending before the board in respect of any order made by the controller before the commencement of this act; or (b) any right or remedy by way of appeal which has accrued to any person in respect of any order made by the controller before such commencement; and any such appeal may be disposed of and further proceedings taken in relation thereto and any such right or remedy may be enforced as if this act had not been passed  statement of objects and reasonsthe object of the bill is to make certain amendments to the estate duty act, 1953 (;34 of 1953) in the l~ht of the experience gained in the working of that act since its coming into force on 15th oetober, 1953 the main amendments are intended to restrict some of the concessions which in the light of subsequent experience do not appear to be justified other amendments have been proposed to clarify assessment procedure, to facilitate collection of duty and also to provide for two appellate authorities these latter amendments seek to bring the provisions of the estate duty act, 1953, into line with those of the indian income-tax act, 1922, the wealth-tax act, 1957, and the expenditure-tax act, 1957 2 the notes on clauses explain the object underlying each of the important amendments proposed in the bill new delhi; j nehru the 28th february 1958 clause 2 defines "appellate controller", "appellate tribunal", "person accountable" and "principal officer" clause 3 provides for inclusion of appellate controller of estate duty amongst the estate duty authorities and for his functions c'lause 4 amends section 9 by increasing-(a) from two years to five years the period before death during which gifts inter vivos become liable to estate duty, as recommended by the taxation enquiry commission, and (b) the extent of relief admissible in the case of gifts in consideration of marriage or of gifts which are part of the normal expenditure clauses 5 to 7 are consequential upon the amendment proposed in clause 4 clause 8 contains a clarificatory amendment clause 9 corrects a printing mistake clause 10 deletes the explanation to section 18 defining "principal officer" as it is no longer necessary in view of the amendment proposed in clause 2 clause 11 substitutes "india" for the words "territories to which the act extends" as the act now extends to the whole of india clause 12 substantially reproduces the provisions of sub-section (1) of section 84 of the act relating to companies incorporated outside india which carry on business in india and at the same time extends the liability for estate duty to debentures held by deceased persons in such companies clause 13 makes amendments similar to those in ~lause 11 clause 14 contains an amendment similar to those in clauses 4(a) 5, 6 and 7 the proviso is omitted as being redundant clause 15 contains a clarificatory amendment clause 16 contains amendments which are either consequential upon the amendment proposed in clause 4 (a), or are clarificatory clause 17 redrafts the provisions relating to aggregation for determining the rate of estate duty so as to bring under aggregation the interests in the joint family property of the lineal descendants of the deceased member as well clause 18 amends section 35 of the act to do away with the provision for different exemption limits for the value of the deceased's interest in coparcenary property and for property of any other kind clauses 19 and 20 contain amendments similar to those in clause 11 clause 21 seeks to restrict the relief admissible under section 50 of the act to one half of the court-fees paid clause 22 provides that no estate duty shall be paid in respect of property on which gift-tax has been levied clause 23 amends section 53 to provide for the levy of interest on the estate duty payable for non-submission of accounts within the time allowed clause 24 effects the following amendments:-(i) the new section 56 makes grant of succession certificate also conditional on production of controller's certificate as to payment of estate duty; (ii) the new section 57 provides for "provisional assessment"; (iii) the new section 58 provides for regular assessment; (iv) the new section 59 provides for assessment or re-assessment of property escaping assessment in the first instance; (v) the new section 60 incorporates the provisions of section 56 of the act and also provides for penalty for concealment generally; (vi) the new section 61 corresponds to section 62 of the act; (vii) the new section 62 amends section 63 of the act and provides for appeals being filed in the first instance to the appellate controller of estate duty instead of to the board as at present; (viii) the new section 63 provides for an appeal from the orders of the appellate controller to the appellate tribunal the appellate tribunal is·-alsq empowered to refer questions of disputed valuation to the arbitration of valuers; (ix) the new section 64, redrafts section 64 of the act and pr0-vides for the appellate tribunal to refer questions of law to the, high court at the instance of the person accountable or the controller; \ (x) the new section 65 corresponds to section 65 of the act clause 25 amends section 67 so as to confine it to certificates of payment of estate duty clause 26 reduces the number of permissible instalments for payment of estate duty in respect of immovable property from eight yearly or sixteen half-yearly instalments to three yearly or six halfyearly ins~alments clause 27 makes th:? following amendments:-(1) the new section 73 incorporates the provisions of subsection (2) of section 58 and also makes provisions for recovery of duty, penalty, etc, on lines similar to those in the indian income-tax act, 1922; (2) the new section 73a reproduces section 59 of the act with the modification that no assessment shall be commenced after the expiration of five years from the date of death of the deceased and no re-assessment proceedings shall be commenced after the expiry of three years from the  completion of the original assessment clause 28 contains a clarificat,ory amendment clause 29 corresponds to sub-sections (2) and (3) of section 84 of the act and also brings statutory corporations under its purview clause 30 amends the second schedule providing for uniformity in the exemption limit and in the rates applicable in all cases whether the estate consists of coparcenary property or property of any other kind clause 31 is a "saving'~ clause preserving the rights and remedies available to accountable persons under the existing provisions relating to appeals and the procedure regulating appeals the bill seeks to amend the estate duty act, 1953 the estate duty act is being administered by the officers of the income-tax department and only a few officers are employed exclusively on estate duty assessments with the reduction of the exemption limit the assessment work is bound to increase and it will be necessary to employ larger number of officers exclusively on estate duty work appeals against assessments, which under the existing act, have to be filed before the central board of revenue will hereafter be heard by the appellate controllers it is therefore necessary to appoint appellate controllers as well the increase of personnel, along with incidental expenses of administration, including payment of remuneration of valuers is estimated to cost rs 5 lakhs i volume of work by the reduction of the exemption limit to rupees fifty thousand it is estimated that there will roughly be another 10,000 estates in a year which would become liable to estate duty more assistant controllers have therefore to be appointed to deal with appellate work it is proposed to appoint only one appellate controller for the present additional staff will be appointed as and when it is found really necessary ii requirement of personnel and finance a officers no cost rs i i x 2,000 x 12 = 20 no of appellate controllers no: of assistant controllers taking the average disposal per assistant controller per annum at 500 20 x 500 x 12 1,20,000 10 21 42 21 10 x 250 x 12 30,000 21 x 250 x 12 63,000 42 x 150 x 12 75,600 21 x 120 x 12 30,240 i b staff no of inspectors no of head-clerks no of u d cs no of l d cs no of stenographers no of steno-typists 21 i x 150 x 12 1,800 21 x 140 x 12 -= 35,280 3,79,920 say 3,75,000  c incidental expensesincidental expenses including class iv staff, contingencies and payment of remuneration to valuers estimated at  total - 5,00,000  a billfurther to amend the estate duty act, 1953 the president has, in pursuance of clauses (1) and (3) of article ii7 and clause (1) of article 274 of the constitution of india, reconunended to the lok sabha, the introduction and consideration of the bill secretary (shri j(jfjjahar lal nehru, minister of finance) 