ELSY THOMAS Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) IN relation to the proceedings under Section 64(1) of the Estate Duty Act, 1953, in the matter of estate duty assessment of the accountable person claiming as the legal heir of the late Shri K. P. Thomas, who expired on June 10, 1966, we are required to consider the correctness of the valuation of the closing stock which has been fixed on what is presumed to be the market value thereof. Therefore, the question expecting our answer is as follows :

(2.) THE Assessing Officer-Assistant Controller of Estate Duty, Trichur-dealt with the question and ascertained the value of the closing stock on the basis of the valuation in accordance with the market value.

(3.) THIS court in I.T.R. No. 164 of 1991--Smt. Sajani v. CED [19981 231 ITR 559 decided on August 7, 1996 (of which, one of us--myself, delivered the judgment), had occasion to consider the question of an identical nature. THIS was in a situation where the value of the closing stock was enhanced to the extent of the market price obtainable in retail sales. The court is concerned with the process of valuation of the closing stock and the relevant date in regard thereto would be the date of death of the person in regard to whose estate proceedings are initiated. THIS court has held therein that fixation and valuation in the matter of closing stock is an undisputed factual situation. No other course is open to us under the circumstances.