Estate duty valuation dispute on Rule 1BB held referable where the lower value issue arose from the record.

Rule 1BB of the Wealth-tax Rules, 1957 was treated as procedural and therefore retrospective, removing dispute on its general applicability to estate duty valuation. The surviving issue was whether, after that rule was applied, the lower valuation could be adopted for estate duty purposes even though the accountable person had declared a higher value. As that question arose from the record, it was held fit to be referred for opinion under section 64(3) of the Estate Duty Act, 1953. The matter was thus confined to reference of the surviving valuation question, with no substantive determination of the valuation issue.

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Issues: Whether the Tribunal was justified in treating rule 1BB of the Wealth-tax Rules, 1957 as applicable to the estate duty valuation question and whether the second proposed question, concerning adoption of the lower value under that rule despite a higher value declared by the accountable person, required reference under section 64(3) of the Estate Duty Act, 1953.

Analysis: The first proposed question was not pursued after the position was accepted that rule 1BB, being procedural in nature, operated retrospectively. On the second question, the accountable person had declared the house at a higher value, and the controversy remained whether, after application of rule 1BB, the lower value could be adopted for estate duty purposes. The Court found that this question did arise from the record and was fit to be referred for opinion under section 64(3).

Conclusion: The second question was directed to be stated and referred to the Court for opinion.

Final Conclusion: The application succeeded only to the extent of securing a reference on the surviving question, and the matter was not decided on the substantive valuation issue.

Ratio Decidendi: Where a valuation dispute under estate duty turns on the effect of rule 1BB and the issue arises from the record, the question is referable under section 64(3) of the Estate Duty Act, 1953.

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