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Issues: Validity of reopening of assessment under s. 59(a) of the ED Act, 1953; Notice addressed to the accountable person; Reopening of assessment without recorded reasons; Non-disclosure of facts leading to reopening.
Analysis: 1. The case involves a challenge to the reopening of an estate duty assessment under s. 59(a) of the ED Act, 1953. The original assessment was completed in 1976, but the ACED reopened the assessment in 1977, alleging that certain incomes had escaped assessment, including the value of standing crop, deceased's share in a firm's goodwill, and deemed gift on sale of agricultural land. The reassessment resulted in an increased valuation, which was contested by the accountable person. 2. The first issue raised was regarding the validity of the notice under s. 59, as it was not specifically addressed to the appealing accountable person. The accountable person relied on previous decisions, arguing that notice should be correctly addressed. However, the Tribunal held that such an objection was not raised at earlier stages and cited precedents to support the validity of notice to any accountable person as per the ED Act. 3. The second point of contention was the lack of recorded reasons for the reopening of the assessment. The accountable person argued that without recorded reasons, the reopening was invalid. However, the Tribunal noted that unlike the IT Act, the ED Act does not mandate recording reasons for reopening, and thus rejected this objection. 4. The final issue was the non-disclosure of facts leading to the reopening. The accountable person contended that all relevant information was disclosed in the original statement of account, including details of the deceased's assets and transactions. The Tribunal agreed with the accountable person, emphasizing that no new information justifying the reassessment was presented, rendering the reopening invalid under s. 59 of the ED Act. 5. Ultimately, the Tribunal ruled in favor of the accountable person, canceling the reopening of the assessment and allowing the appeal. The decision highlighted the importance of proper disclosure of facts and the necessity of valid grounds for reassessment under the relevant provisions of the law.
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