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Issues:
1. Admissibility of appeal against an order passed under section 61 of the Estate Duty Act. 2. Justification for rectification under section 61 of the Estate Duty Act. 3. Use of wealth-tax assessment valuation as a basis for estate duty assessment. Analysis: Issue 1: Admissibility of appeal against an order passed under section 61 of the Estate Duty Act: The case involved a dispute regarding the admissibility of an appeal against an order passed under section 61 of the Estate Duty Act. The Appellate Tribunal held that the appeal was maintainable based on previous directions. The High Court, after considering relevant precedents, concluded that once an order of rectification was passed, the assessment itself was modified. Therefore, the accountable person's appeal was against the original order as rectified, not against the order passed under section 61. The court held that the appeal was justified, following established legal principles and previous court decisions. Issue 2: Justification for rectification under section 61 of the Estate Duty Act: The Assistant Controller of Estate Duty initiated proceedings to rectify the estate duty assessment to align it with the valuation in the wealth-tax assessment. The accountable person objected, arguing that the valuation in the estate duty assessment was based on a proper valuation report and discussions. The court found that the valuation in the original assessment was reasonable and not in need of rectification. It was established that the wealth-tax assessment figures were ad hoc and not conclusive for rectification purposes. The court upheld the Appellate Tribunal's decision that there were no apparent mistakes on record warranting rectification under section 61 of the Act. Issue 3: Use of wealth-tax assessment valuation as a basis for estate duty assessment: The dispute also revolved around whether the valuation adopted for wealth-tax assessment could serve as a basis for estate duty assessment. The Appellate Tribunal found that the wealth-tax assessment figures were ad hoc and not suitable for rectification purposes in the estate duty assessment. The court agreed with this finding, emphasizing that the valuation for estate duty assessment was based on proper procedures and discussions, making it unnecessary to rectify based on the wealth-tax assessment values. The court concluded that the valuation adopted for wealth-tax purposes could not provide a valid basis for rectification in the estate duty assessment. Consequently, the court answered all questions in favor of the accountable person, ruling against the Revenue. In conclusion, the High Court upheld the decisions of the Appellate Tribunal, ruling in favor of the accountable person on all issues raised in the case. The court found no grounds for rectification under section 61 of the Estate Duty Act and determined that the valuation for wealth-tax assessment could not be used as a basis for the estate duty assessment.
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