Estate duty valuation benefit applied retrospectively to earlier deaths, requiring recomputation of the residential house value.

Section 36(3) of the Estate Duty Act, 1953, which values one residential house or part thereof by reference to the Wealth-tax Act, 1957, was treated as applicable even where the death occurred before 1 March 1981. The provision was read as a clarificatory measure extending the valuation benefit to earlier deaths, supported by its cross-reference to section 7(4) of the Wealth-tax Act and the judicial approach to similar valuation provisions. The estate was therefore required to be recomputed on that basis in favour of the accountable person.

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Issues: Whether section 36(3) of the Estate Duty Act, 1953, which prescribes valuation of one residential house or part thereof with reference to the Wealth-tax Act, 1957, applies to deaths occurring before 1 March 1981, and whether the accountable person was entitled to recomputation of the estate value on that basis.

Analysis: The provision, though stated to be effective from 1 March 1981, was read as a legislative measure intended to extend the valuation benefit to accountable persons even in respect of deaths occurring earlier. The reference made within the provision to section 7(4) of the Wealth-tax Act, 1957, and the consistent judicial approach treating similar wealth-tax valuation provisions as retrospective or clarificatory, supported that interpretation. The amendment was treated as designed to remove controversy in valuation matters and to align estate duty valuation with the wealth-tax framework.

Conclusion: Section 36(3) of the Estate Duty Act, 1953, was held applicable to the assessee's case notwithstanding that the death had occurred before 1 March 1981, and the estate was directed to be recomputed accordingly, in favour of the assessee.

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