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Issues:
1. Inclusion of house property in estate for estate duty assessment. 2. Valuation of the property for estate duty purposes compared to wealth-tax valuation. Detailed Analysis: Issue 1: The first issue in this case revolved around the inclusion of a house property in the estate of a deceased individual for estate duty assessment. The deceased had acquired the property through a leasehold arrangement and had constructed a building on it. The Asst. Controller included the value of the house in the estate of the deceased, which was contested by the assessee on the grounds of defective title to the land and encumbrances on the property. The Tribunal, following the decision in CED v. Hussainbhai Mohamedbhai Badri, held that the deceased had a valid interest in the property, which passed on her death to others entitled to succeed her. The Tribunal considered factors such as peaceful possession, rental income, municipal records, and holding tax to conclude that the property was includible in the estate of the deceased. Issue 2: The second issue pertained to the valuation of the property for estate duty purposes. The Asst. Controller and the Appellate Controller had initially valued the property at sixteen times the net rental income. However, due to the disputed title of the deceased, the Tribunal determined the value by multiplying the rental by thirteen times instead. The assessee contended that the valuation for wealth-tax assessment was lower than that for estate duty assessment, and there was no justification for this disparity. The High Court acknowledged this discrepancy and left it to the Tribunal to reconsider the valuation in light of the submissions made by the assessee, without providing a definitive answer on this aspect. In conclusion, the High Court upheld the Tribunal's decision on the inclusion of the house property in the estate of the deceased but did not provide a conclusive ruling on the valuation issue, leaving it open for further consideration by the Tribunal. The judgment highlighted the importance of assessing property passing on death and the need for consistency in valuation methods for different tax assessments.
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