bgp IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION EXCISE DUTY REFERENCE NO.4 OF 1980 Jasvantlal Matubhai & Ors. ..Applicant Vs. The Controller of Estate Duty ..Respondent Mr.Nitesh Joshi i/b.M/s.Jamietram & Madan for applicant. Mr.D.K.Kamwal with H.D.Pandey for respondent. CORAM :- V.C.DAGA & K.K.TATED,JJ. DATE : 24TH FEBRUARY,2010 P.C. 1. Heard. Perused application. 2. The Tribunal has made a reference seeking opinion of this Court on the following substantial question of law: Whether on the facts and in the circumstances of the case, the estate duty payable by the accountable persons, is deductible in computing the net principle value of the estate of the deceased ? 3. The Apex Court in the case of P .Leelavathamma Vs. Controller of Estate Duty (1991) 188 ITR 803 held as under: Estate duty falling upon property passing on the death of the deceased is not deductible in computing the net principal value of the estate for the purpose of the Estate Duty Act,1953. The imposition of the charge under the Act does not arise until the death has actually occurred and the property has, thereupon, passed. Essentially and basically estate duty is a burden on the estate and that burden is fastened on the estate upon the death of the deceased. During his life no liability under the Act arose or could arise. The “debts and encumbrances” mentioned in section 44 of the Estate Duty Act,1953, are, as a general rule, debts and encumbrances incurred before the death of the deceased. 4. In view of the above, the issue referred, is squarely covered by the aforesaid judgment of the Apex Court in favour of the Revenue. 5. Accordingly, the question referred is answered against the applicant/assessee and in favour of respondent Revenue. Reference stands disposed of accordingly with no order as to costs. (K.K.TATED,J.) (V.C.DAGA,J.)