9911796707
TMI Blog1986 (7) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... let the said promises to Raymond Mills Ltd. with effect from 26-9-1969, for a period of ten years on rent of Rs. 5,000 per month. This rent has been described as compensation in the indenture executed on 4-11-1969 in connection with this transaction. The subletting had been effected after obtaining prior permission of the owner of the premises. The permission was given by the owner on the condition that the deceased and the co-tenant agreed to pay Rs. 1,619.60 per month as rent in place of Rs. 809.60 which was payable earlier. This condition was accepted by the deceased and the co-tenant. They had further obtained on 23-9-1969 from the Controller of Accommodation, Government of Maharashtra 'no-objection' to the creation of sub-tenancy which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty passing on death was valued at Rs. 1,02,000 in the estate duty assessment of said co-tenant. According to him the said valuation was within the knowledge of the accountable person and that on these facts proper valuation would be 8/7 of Rs. 1,02,000, i.e., Rs. 1,16,570. He, accordingly, included Rs. 1,16,570 instead of Rs. 20,322 returned by the accountable person. The Controller (Appeals) found no infirmity in the valuation made by the Assistant Controller and the accountable person is in appeal before us. The first ground in the memo of appeal is directed against this valuation. 4. Before us an altogether new point has been raised. That point is that on the above facts the deceased could not be said to hold any asset and as such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision is P.S. Gandhi v. CWT [1983] 141 ITR 105. It was held therein that where after determination of lease, lessee continues in possession and no action is taken by lessor to evict the lessee, the status of the lessee was that of a tenant holding over and the right of such tenant in the premises of occupation and enjoyment was an asset includible in net wealth. The position of deceased was stronger as far as tenanted premises were concerned. He was not a mere tenant. He was seized of permission given by his landlord to sublet and to enjoy the income derived from subletting. The Government had also granted necessary permission. Hence, the right which the deceased had in respect of the premises constituted property which passed on his death. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. As regards the two decisions cited on behalf of the assessee, we are of the opinion that the ratio thereof is not at all applicable to the peculiar facts of this case, where sub-tenancy is created after its terms are approved by the landlord and the Controller of Accommodation, the Government of Maharashtra. We find no error in computation of value of the property which passed on death after considering all the circumstances. We do not agree with the alternate submission to the effect that the value of the deceased's right should be determined at Rs. 44,000 on the footing that maintainable rent would be Rs. 80,000 and after deduction of Rs. 19,435 payable to the landlord the net income would be Rs. 10,565 for which capitalised value woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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