Ajit K. Sengupta, J. - (1.) In this reference under Section 64(1) of the Estate Duty Act, 1953, the following question of law has been referred to this court: "Whether, on the facts and in the circumstances of the case and on a proper interpretation of the proviso to Section 62(1) of the Estate Duty Act, 1953, the Appellate Tribunal was correct in holding that the Appellate Controller of Estate Duty was not justified in entertaining the appeal filed by the accountable person and in restoring the penalty imposed by the Assistant Controller of Estate Duty ?"
(2.) Shortly stated, the facts are that the accountable person was required to pay a sum of Rs. 57,239 by way of estate duty under a notice of demand served on the accountable person on February 10, 1976. The amount of the estate duty was required to be paid on or before March 4, 1976. On an application made by the accountable person, the Assistant Controller of Estate Duty allowed the accountable person to pay the estate duty in instalments on the dates specified by him in this behalf. As the accountable person failed to pay the estate duty in accordance with the aforesaid scheme, the Assistant Controller of Estate Duty imposed a penalty of Rs. 5,000 on February 1, 1977 under Section 46(1) of the Indian Income-tax Act, 1922, read with Section 73(5) of the Estate Duty Act, 1953.
(3.) The accountable person filed an appeal against the aforesaid order of penalty before the Appellate Controller of Estate Duty on March 10, 1977. Before the Appellate Controller of Estate Duty, it was pointed out that a sum of Rs. 10,000 had been paid by the accountable person on February 9, 1977. It was contended before the Appellate Controller that the accountable person fully co-operated with the Department and that the entire estate duty had been paid before the appeal was heard by the Appellate Controller. The delay in payment was explained as being due to financial difficulty on the part of the accountable person. The Appellate Controller of Estate Duty accepted the contention of the accountable person and cancelled the penalty imposed by the Assistant Controller of Estate Duty.;