Report No. 52
8. Change in the law needed.-
We are, therefore, of the view that relief should be granted in the following situations:-
(1) Where it is proved to the satisfaction of the Controller that the property has, within six months of the deceased's death, been acquired without compensation under any law, the value of such property should not be taken into account for the purposes of the Act, in such cases.
(2) Where it is proved to the satisfaction of the Controller that the property has, within six months of the deceased's death, been acquired by or under any law which provides for compensation, the amount of such compensation should be substituted for the value of the property for the purpose of this Act. In such cases, there will be no total exemption, but only substitution of the amount for another, for the purpose of valuation.
As to the period of six months mentioned in our proposal above, a few words are in order. A query could be raised why property acquired after the expiry of six months from the date of death, should not enjoy the proposed relief, merely because a period of six months has elapsed. Such queries can be answered only by stating that any time-limit in this regard is bound to be arbitrary, and that position would remain valid even if the period is to be, say, one year.
But we would like to add that, where acquisition without compensation or acquisition for inadequate compensation, takes place after the expiry of the proposed period of six months, it would be proper if the Government examines the question whether, in the circumstances of the particular case, relief by an order passed under the Act,1 should not be granted.
1. Section 33(2).