Estate duty valuation may follow wealth-tax valuation where both laws apply the same open market value test.

Estate duty valuation is to be fixed at the open market price the property would fetch on the date of death. The Controller may accept the accountable person's valuation or make an independent estimate under the Estate Duty Rules, but the final satisfaction as to value remains with the Controller. Because the valuation principles under the Estate Duty Act and the Wealth-tax Act are the same, a valuation adopted in wealth-tax proceedings may serve as a proper basis for estate duty valuation. On the stated facts, the wealth-tax appellate valuation was accepted as a valid basis for the reduced estate duty value.

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Issues: Whether the valuation adopted for wealth-tax purposes could properly be taken as the basis for determining the principal value of immovable property for estate duty, and whether the Tribunal was justified in upholding the reduced valuation.

Analysis: Under section 36 of the Estate Duty Act, 1953, the principal value is to be estimated at the price the property would fetch in the open market at the date of death. Rule 14 of the Estate Duty Rules permits the Controller to accept the accountable person's valuation or to make his own estimate, including by obtaining assistance from a valuer, but the final satisfaction as to value rests with the Controller. The principles for determining market value under the Estate Duty Act and the Wealth-tax Act are the same, and a valuation adopted in wealth-tax proceedings may constitute a proper basis for estate duty valuation. On the facts, the wealth-tax appellate valuation of the property at Rs. 3,28,380 was accepted as a valid basis.

Conclusion: The valuation adopted in the wealth-tax proceedings was rightly taken as the basis for estate duty, and the Tribunal was correct in sustaining the reduced value.

Ratio Decidendi: Where the statutory test for estate duty valuation is open market value and the valuation principles under the estate duty and wealth-tax laws are the same, the wealth-tax appellate valuation may be adopted as a proper basis for estate duty valuation if the Controller is satisfied with it.

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