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Issues: Valuation of minor's interest in a trust property for multiple assessment years.
The judgment involves five appeals by the assessee challenging the valuation of the appellant's share in a trust property at Rs. 8,00,000 by the 5th WTO, rejecting the claim for a lower discounted value. The appeals cover the assessment years 1973-74, 1974-75, 1975-76, 1978-79, and 1979-80, with common grounds disposed of in a consolidated order. The case revolves around the inheritance and settlement of leasehold properties by late Mr. Jehangir Ardheshir Wadia, leading to a trust deed between Mrs. Ratan Bai and her son, Mr. Ardesher Jehangir Wadia, appointing the Official Trustee of Bombay. Following Mr. Ardesher Jehangir Wadia's death, the minor appellant became a beneficiary, with the Trustee selling the property and earmarking Rs. 8,00,000 for the minor's share, subject to expenses and taxes, as directed by the High Court. The appellant argued for a discounted valuation of the trust property due to the delayed receipt of the corpus, while the authorities valued it at Rs. 8,00,000, considering the income from the property was utilized for the minor's benefit. The appellant cited a previous tribunal order for a discounted valuation in a similar case. The Departmental Representative opposed the discounted valuation, contending that the trust property's income benefited the minor, making the property effectively in the minor's hands. They argued that the investment restrictions were in the minor's interest, and the previous tribunal order did not set a precedent for the current case. The Tribunal upheld the appellant's claim for a discounted valuation, citing consistency with a previous order involving the same parties and subject matter. They found merit in the appellant's arguments and directed the valuation of the asset after suitable discounting using accepted actuarial methods for all assessment years, maintaining consistency in their view. In conclusion, all appeals were allowed in favor of the assessee, with the market value of the appellant's asset in the assessment years to be determined after suitable discounting, as per accepted actuarial methods.
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