D.K.Mahajan, J.

1. The Income-tax Appellate Tribunal, Chandigarh Bench, has referred the following question of law for our opinion :

"Whether, on the facts and in the circumstances of the case, the sum of Rs. 42,000 received by the dependants was liable to estate duty ?"

2. Shri D. P. Malhotra was the Chief Engineer in the State of Jamrnu £ Kashmir. He died on 7th February, 1966, in a plane crash near Banihal. On his death, his widow and sons were given Rs. 42,000 by the Indian Airlines Corporation (the carriers). The amount was subjected to estate duty by the Assistant Controller, Estate Duty, Julhmdur, who observed :

"It is claimed in the account of the estate that the legal heirs of the deceased were given a sum, of Rs. 42,000 as ad hoc compensation by the Indian Airlines Corporation because the deceased died in the accident while travelling as passenger of the Indian Airlines Corporation. Shri Dhawan claimed that this amount is exempt as this asset was not in existence at the time of death of the deceased and Shri Dhawan, therefore, claimed that it is not a property which passed on the death of the deceased. I have considered the contention of Shri Dhawan and I cannot a