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TMI Blog1985 (2) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... e have heard both the sides. In the course of hearing, it is pointed out that in the estate duty appeal filed by Shri Shyamsundar Naskar, the other accountable persons did not receive a notice of hearing as alleged by the Assistant Controller, nor have they any knowledge of the return submitted by Shri Shyamsundar Naskar, one of the accountable persons, who is stated to be not in sound mind. It is also the appeal by the accountable person that the valuation of the properties was made at abnormally high rate. It is pointed out by the learned counsel for the accountable person that he is ready to take up the estate duty appeal also at the present stage. There is no objection also from the side of the revenue for hearing of the estate duty appeal presently. 3. In view of the aforesaid position, we take into account the contentions made in the stay petition. Since the estate duty appeal is being taken up simultaneously, we find that the stay petition of the appellant till the disposal of appeal would become irrelevant. Accordingly, the stay petition filed by the accountable person is dismissed, as the estate duty appeal in question is being taken up for disposal by us now. 4. As in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he grounds of appeal, it is agitated that the Appellate Controller was not justified in dismissing the appeal despite the fact that the other accountable persons, who are six in number, did not receive any notice of hearing as alleged by the Assistant Controller, nor they had any knowledge of the return submitted by Shri Shyamsundar Naskar. It is also the appeal by the accountable persons that Shri Shyamsundar Naskar, who filed the estate duty return, was not in sound mind. That apart, it is also urged that the valuation of the properties was arbitrarily and abnormally high and that the Appellate Controller failed to consider these facts which have been brought to his notice at the appellate stage. It is the appeal also that the Assistant Controller failed to ascertain the correct and actual state of affairs and the correct or real value of the properties or to apply the judicious mind in making the assessment. It is submitted by the learned counsel that Shri Shyamsundar Naskar was of unsound mind and that fact was brought to the notice of the Appellate Controller, who did not consider the materials of the case before coming to the above conclusion, on the basis of which the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-operation came forward from them, the assessment had to be completed on the basis of the return itself. It is urged that the claim that Shri Shyamsundar Naskar was of unsound mind was not made at the assessment stage and in fact, this point is a new issue. It is also pointed out that the assessment was made on the basis of the return itself and there was no justification to say that the Appellate Controller erred in sustaining the assessment order. In this connection, it is urged that the fact that persons have not been treated as accountable persons would not by itself vitiate the assessment proceedings in view of the decision of the Hon'ble Supreme Court in the case of Madan Lal Lohia v. Assistant Controller [1977] 108 ITR 627. The learned departmental representative read out some of the text of the judgment in order to emphasise his claim. On the whole, it is urged that on the facts of the case, the assessment was properly and validly done and the valuation was reasonable and proper and order of the Appellate Controller may, therefore, be sustained. 8. We have perused the orders of the authorities below along with the other papers placed before us for our consideration. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant Controller, whether any penalty could be levied on the appellant for contravention of the terms of the notice. In other words, in that decided case, the assessment had been completed earlier and for the purpose of recovery of the estate duty, the Assistant Controller issued attachment notice to the lessee of the property from whom the rent was receivable by the lessees who were the legal heirs of the deceased, although a son and a daughter of that deceased in their capacity of the executor of the will of the deceased, filed the estate duty account of the property passing on the death of the deceased. 9. In the present case, however, it is seen that more basic facts are required to be brought on record as indicated briefly above. In fact, the Appellate Controller has not dealt with various issues made by the accountable person before disposing the appeal. In our opinion, it is necessary that other accountable persons should be given reasonable opportunity of being heard before completion of any proceeding either by the Assistant Controller or by the Appellate Controller. True, the Assistant Controller noted that there was no compliance from the other accountable persons. But ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the authorities below are so inadequate that it is difficult for us to decide the case either way. That apart, it may be mentioned here that in the case of Madan Lal Lohia, the assessment order was not challenged by that assessee nor was declared invalid by the competent authority and, therefore, in the circumstances of that case, the order of the assessment was taken to be valid for the purpose of the matter pending before the Hon'ble Supreme Court. But the facts before us in the present case are different as the assessment order itself is being challenged on more than one ground. It is true that when the order of the assessment is made, not only the accountable person in respect of whom the proceedings for the assessment has been taken but also every other accountable persons would be liable to pay the duty, limited of course to the assets of the deceased which passed to that accountable person. But in the instant case, there is no such basic or relevant facts on record to ascertain who were the accountable persons and what property passed and to whom passed. It is necessary also to take into account the definition of the word 'legal representative' as defined in section 2(12) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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