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TMI Blog1981 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... itle to the land was defective and the property was not free from encumbrances ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in fixing the valuation of the property at a multiple of 13 times the net rental, even though, admittedly, the department had fixed the valuation at a much lower figure for the purpose of wealth-tax ? " One Joginder Singh along with jai Singh took a lease of certain lands located at Rourkela from Birabar Naik and others who happened to be members of the Scheduled Tribes and the lease was for a term of 99 years. Smt. Prakash Kaur purchased a portion out of the leasehold from Joginder Singh during her lifetime and constructed a building on the said property between 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or purposes of wealth-tax and income-tax. The Tribunal also took note of the fact that the property had been mutated in the municipal records in her name and she was subjected to holding tax for the property. Relying on the ratio of the decision of the Supreme Court in the case of CED v. Hussainbhai Mohamedbhai Badri [1973] 90 ITR 148, the Tribunal came to hold that the deceased had interest in the property which did pass on her death to others entitled to succeed thereto. For the purposes of the statute " Property passing on the death of the deceased " has to be taken into account and the beneficial interest held by the assessee did pass upon her death to others in accordance with the personal law of the deceased. The Tribunal, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means changes hands. To ascertain whether property has passed, a comparison must be made between the persons beneficially interested the moment before the death and the persons so interested the moment after the death. " Reliance was placed on the observations of Lord Russell of Killowen in Scott and Coutts and Co. v. IRC [1937] AC 174; 2 EDC 579 (HL). The features which have been found in the present case are that the deceased was in peaceful occupation and enjoyment of the property for about six years prior to her death ; she had been receiving rental income from the property which she was duly accounting for the purposes of income-tax and wealth-tax; and the house stood recorded in the municipal records in her name and was subjected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rental method. The Appellate Tribunal, on the other hand, considered that the property in question was entirely tenanted and accordingly the rental method was the proper method and that was adopted by the Assistant Controller of Estate Duty. Although the Appellate Tribunal had not expressed this view in so many words yet it considered the submission of the assessee duly and rejected the same ......... .." Mr. Pasayat, for the assessee, contended that the Tribunal as a fact did not really consider even what has been stated by it at the time of disposing of the miscellaneous application. The valuation of the house had to be made as on October 22, 1974, when the deceased expired. For wealth-tax purposes, the property was valued in the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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