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Issues:
1. Exemption under section 33(1)(n) of the Estate Duty Act. 2. Valuation of stocks of the firm for estate duty purposes. Exemption under section 33(1)(n) of the Estate Duty Act: The case involved a dispute regarding the exemption granted under section 33(1)(n) of the Estate Duty Act. The deceased held a half share in a joint family house, which was valued at Rs. 35,000. The Appellate Controller directed the entire amount to be exempted based on relevant High Court decisions. The Revenue challenged this exemption, arguing that only the deceased's interest in the residential house should be exempt. The Full Bench of the Andhra Pradesh High Court clarified that the exemption should be applied by deeming the whole house as belonging to the deceased. The Tribunal upheld the exemption, citing the High Court's decision. Valuation of stocks of the firm for estate duty purposes: Another issue in the case was the valuation of stocks of the firm in which the deceased held a half interest. The Asstt. Controller revalued the closing stock of the firm, adding an estimated profit share to the estate value. The Appellate Controller, however, disagreed and deleted the addition, stating that the interest of the deceased in the firm should be valued as a going concern. The decision was supported by a Calcutta High Court ruling emphasizing the importance of the balance sheet value in such valuations. The Tribunal further referred to a Madhya Pradesh High Court decision, highlighting that revaluing only one asset for determining the deceased's share in the firm is not valid. Consequently, the Tribunal dismissed the Revenue's appeal, emphasizing the need to consider all assets and liabilities of the firm for valuation purposes. In conclusion, the Tribunal upheld the exemption under section 33(1)(n) of the Estate Duty Act based on relevant High Court decisions. Additionally, the Tribunal emphasized the importance of valuing the deceased's share in a firm as a going concern and considering all assets and liabilities for accurate valuation, as supported by Calcutta and Madhya Pradesh High Court rulings. The Tribunal dismissed the Revenue's appeal in both issues, highlighting the need for a comprehensive valuation approach in estate duty matters.
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