Estate duty valuation follows wealth-tax value for self-occupied property and rental capitalisation for wholly let-out property.

Property valued under the wealth-tax regime may be adopted for estate duty purposes where the governing valuation provision is applied retrospectively to reflect legislative intent. A self-occupied property was therefore to be taken at the wealth-tax value. For a wholly let-out commercial property, valuation had to follow the rental capitalisation method, allowing the recognised statutory deductions for municipal taxes, repairs and collection charges, and capitalising the net annual letting value. A separate addition for speculative future construction potential was not justified where the property was already let out and not in the accountable person's possession. The estate duty valuation was to be recomputed accordingly.

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Issues: (i) Whether the self-occupied property was to be valued at the same figure as adopted under the wealth-tax law. (ii) Whether the let-out commercial property had to be valued by allowing full statutory deductions and by capitalising the net annual letting value, without adding a separate value for future construction potential.

Issue (i): Whether the self-occupied property was to be valued at the same figure as adopted under the wealth-tax law.

Analysis: The valuation was held to be governed by the law as it stood on the date of death, and the subsequent amendment giving retrospective effect was treated as reflecting the legislative intent to prevent avoidable litigation over property valuation. The property had already been assessed for wealth-tax purposes, and the same figure was treated as the proper benchmark for estate duty valuation.

Conclusion: Yes. The self-occupied property had to be taken at the wealth-tax value.

Issue (ii): Whether the let-out commercial property had to be valued by allowing full statutory deductions and by capitalising the net annual letting value, without adding a separate value for future construction potential.

Analysis: The property was wholly let out, so the valuation had to proceed on the basis of the accepted rental method, allowing municipal and other taxes in full and allowing deductions for repairs and collection charges on the recognised basis. The net annual letting value was to be capitalised, and a separate addition for speculative future construction value was found unjustified where the entire property was already let out and not in the possession of the accountable person.

Conclusion: Yes. The let-out property had to be valued on the rental basis, and the additional land value was not sustainable.

Final Conclusion: The accountable person succeeded on both valuation disputes, and the estate duty valuation was directed to be recomputed accordingly.

Ratio Decidendi: Where the governing valuation provision is given retrospective effect, property valued under the wealth-tax regime may be adopted for estate duty purposes, and a wholly let-out property must be valued on the rental capitalisation basis without speculative addition for future construction potential.

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