1996 (8) TMI 24

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..... following question : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the value of the closing stock of the firm, Popular Automobiles, was to be enhanced to the extent of the market price obtainable in retail sales?" There is no dispute with regard to the basic position that for the purposes of levy of estate duty under the Estate Duty Act, .....

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..... ate Duty, Trichur, has not travelled far and wide in any sense of the situation but has added this amount of special discount at 12.5 per cent. to the closing stock shown by the accountable person in the estate duty return and arithmetically proceeded further to determine 1/5th share in regard thereto. Thus, the factual matrix is beyond all pales of controversy. It is as follows : "The firm is .....

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..... different concerns in large quantities and so the firm is getting special discount on the purchase and as such the cost of purchase would be less than the dealer's price prevailing in the open market. Further, the principal value of any property shall be estimated as per section 36 of the Estate Duty Act which stipulates that it should be the price, which in the opinion of the Controller, it would .....

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..... , the value of closing stock is increased by 12 1/2 per cent. and the deceased's 1/5th share added . . . Rs. 33,531." It would be apparent that whatever may be the situation, the assessing authority---Assistant Controller of Estate Duty, has considered only one aspect of special discount to observe that the cost of purchase is bound to be less than the dealer's price prevailing in the market. He .....

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..... estion. In our judgment fixation and valuation in the matter of closing stock is approached from the point of view of uncontroverted and undisputed position of the special discount which is 12 1/2 per cent. in any situation. It is a situation dealing with the undisputed factual conclusion. For the above reasons, we find that the question has to be answered in the affirmative---against the accoun .....

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