Appellate power in best judgment assessments extends to fresh evidence and further enquiry on valuation and estate inclusion.

In an appeal against a best judgment assessment under the Estate Duty Act, the Appellate Controller is not confined to the material before the assessing authority. The statutory power to pass such order as he thinks fit under section 62(5) permits the appellate authority to examine the correctness of valuation, decide whether properties are includible in the estate, and make further enquiries or consider additional evidence unless the Act expressly restricts that power. The Madras High Court therefore held that the Appellate Controller had jurisdiction to reassess the relevant estate duty issues, and the challenge to that power failed.

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Issues: Whether, in an appeal against a best judgment assessment made under section 58(4) of the Estate Duty Act, the Appellate Controller could consider fresh evidence and make further enquiries while examining the valuation and includibility of assets in the estate.

Analysis: The statutory scheme of the Estate Duty Act gives the Appellate Controller wide powers under section 62(5) to pass such order as he thinks fit. The Act does not draw any distinction between appeals arising from assessments made under section 58(4) and appeals arising from any other assessment. In the absence of a provision enabling the assessing authority itself to set aside an ex parte or best judgment assessment, the appellate authority is not confined to the materials before the Assistant Controller at the time of assessment. It may examine the correctness of the valuation, consider whether particular properties are includible in the estate, and make such further enquiries as are necessary.

Conclusion: The Appellate Controller had jurisdiction to consider additional material and to reassess the valuation and includibility of the properties; the challenge to his powers failed and the answer is in favour of the accountable person.

Ratio Decidendi: In an appeal against a best judgment assessment, the appellate authority may examine the entire assessment, consider additional material, and make further enquiries unless the statute expressly restricts that power.

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