CONTROLLER OF ESTATE DUTY Vs. ILLYAS ASSAM ARBI

JUDGEMENT

(1.) THIS is a reference under Section 64(1) of the Estate Duty Act, 1953. The statement of case has been made by the Income-tax Appellate Tribunal on the following question of law :

(2.) THE deceased, Assam Sakoor Arbi, died on April 8, 1978. His estate is the subject-matter of the assessment. THE deceased was partner of a firm having a rice mill. One-fourth interest of the deceased was valued at Rs. 1,04,939. THE balance-sheet of the firm indicated the total value of the rice mill to be Rs. 1,67,942. THE accountable person claimed in appeal that 1/4th share of the deceased comes to Rs. 44,486 which is the estate of the deceased. THE entire assets of the firm were originally valued at Rs. 3,90,000 but the valuer determined the same at Rs. 5,86,000. For the purpose of assessment, it was taken to be Rs. 4,19,758. THE Controller held that valuation of part of the entire assets cannot be separated from the valuation given in the balance-sheet and, accordingly, the valuation as given in the balance-sheet is to be accepted. He relied upon a decision reported in Surajmall Gouti v. CED [1979] 119 ITR 182, a decision of the Calcutta High Court. In the departmental appeal before the Tribunal, the view taken by the Controller was accepted relying upon the decision reported in Smt. Gunvantibai v. CED [1981] 130 ITR 122 of the Madhya Pradesh High Court (Indore Bench).