Estate duty valuation must match the value fixed for accepting shares in discharge of tax liability.

Where the revenue fixed a value for shares for possible acceptance in discharge of estate duty liability under the statutory arrangement, the Court held that fairness and consistency required the same value to be adopted in the estate valuation for taxation purposes unless a contrary statutory basis existed. The petitioner could not compel acceptance of the shares by mandamus, as acceptance depended on Government agreement, but the assessment nonetheless had to be revised because it valued the shares higher than the value later fixed for the proposed transfer. The writ petition succeeded to that extent, with the assessment directed to align with the later valuation.

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Issues: Whether, for the purpose of computing estate duty, the value of the shares should be revised to conform to the value fixed for acceptance of the shares in lieu of tax liability under section 52 of the Estate Duty Act, 1953.

Analysis: Section 52 permits payment of duty by transfer of property only if the Central Government agrees, and the petitioner could not compel acceptance of the shares by mandamus. However, the assessment had valued each share at a figure higher than the value later fixed by the authority for possible acceptance under the statutory arrangement. In the circumstances, the Court held that fairness required the same value to be adopted for both valuation and taxation purposes, so that the estate was not assessed on a basis inconsistent with the value fixed for the proposed transfer.

Conclusion: The assessment was required to be revised by adopting the value fixed in the later order for computing the value of the estate, which was in favour of the assessee.

Final Conclusion: The writ petition succeeded to the extent that the assessment value of the shares was directed to be brought in line with the value fixed by the authority for the proposed transfer under the Act.

Ratio Decidendi: Where the revenue fixes a value for shares for the purpose of accepting them in discharge of estate duty liability, equity and consistency require that the same value be adopted in the estate valuation for taxation purposes unless a contrary statutory basis exists.

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