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TMI Blog1985 (2) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... rincipal value of the estate of the deceased at Rs. 3,91,876. The deceased lived in Santhapet, Nellore. Admittedly this is a joint family house in which the deceased was having half share. The value of this house was admitted at Rs. 32,000 whereas the value was enhanced by the Asstt. CED to Rs. 35,000 and the half share of the deceased was held to be exempt and the other half of Rs. 17,500 was included under s. 34 of the ED Act for rate purposes. 3. It is contended before the Appellate CED on behalf of the accountable person that the whole of the house should be taken to be exempt under s. 33(1)(n) in view of the Andhra Pradesh High Court decisions in CED vs. Estate of Late Durga Pradesh Beharilal (1979) 116 ITR 692 (AP) and in K. Venugop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made of revaluation of stocks of the firm M/s Vakicherla Veeraiah, Nellore in which the deceased used to have half interest. The stocks were disclosed in the account furnished to the Asstt. Controller at the cost price. As already stated the deceased was having half interest in the firm. The Asstt. Controller did not accept the cost price as the real market value of the closing stock should be taken into consideration under the provisions of s. 36 of the ED Act. The Asstt. Controller estimated the profits which would be derived on the sale of the stock at 10.8 per cent. The total value of the closing stock was stated to be of the value of Rs. 2,00,242. The gross profit of 10.8 per cent was computed at Rs. 21,786. The expenses which are like ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ITO and the share of profit of the deceased upto his date of death having been included in the estated, there is no necessity to make any addition by way of share of estimated future profits to which the accountable person may not be entitled to. The Appellate CED, therefore, deleted the addition of Rs. 9,804. The cancellation or the deletion of the addition of Rs. 9,804 is sought to be questioned in this appeal by the Revenue. 7. However, the matter is directly covered by the Calcutta High Court decision reported in (1979) 119 ITR 182 [Surajmall Gouti vs. CED]. In that case also one of the assets viz., jute press was sought to be revalued even though it constitutes one of the assets held by the firm as per the balance sheet. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to them that the market value of the share of the partner in a firm can be correctly determined by adding up the break-up value of each and every asset of the firm. In the case before them the estate duty authorities accepted the value of the share of the partner as shown in the balance sheet of the firm to start with but added thereto the estimated value of one individual asset viz., jute press. This computation, the Hon ble High Court held in their view is erroneous. At the same time they clarified that the authorities could have rejected the balance sheet value and computed the value of the entire share of the deceased on the basis of what it would fetch in the open market. But they were not entitled to add thereto the estimated enhance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tta High Court decision. The above is not the lonely dedcision existing in the field. There is another decision rendered by the Madhya Pradesh High Court where the question whether the closing stock value can be taken at the market price on the date of the death of the deceased came directly for consideration before the Hon ble Madhya Pradesh High Court in Smt. Gunvantibai vs. CED (1981) 21 CTR (MP) 9 : (1981) 130 ITR 122 (MP). At p. 123 in the headnote both the problem as well as the decision of the Hon ble High Court over it were mentioned as follows: "The Asstt. Controller enhanced the value of the deceased s share of investment in the firm by revaluing the closing stock of the firm. The accountable person contended that the interest o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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