https://www.taxtmi.com/caselaws?id=19783 Estate duty payable on the death of the deceased was not deductible in computing the principal value of the estate, because it did not become an allowable debt or encumbrance for valuation purposes under the Estate Duty Act. By contrast, an actuarially determined gratuity liability, while not deductible as a debt or charge, had to be reflected as a commercial burden in open-market valuation under section 36. The court held that a prudent purchaser would factor in such scientifically ascertainable contingent liabilities, and the liability therefore reduced the estate's market value for estate duty purposes. en-us Thu, 07 Oct 1993 00:00:00 +0530 Mon, 09 Nov 2009 16:58:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19783 Estate duty payable on the death of the deceased was not deductible in computing the principal value of the estate, because it did not become an allowable debt or encumbrance for valuation purposes under the Estate Duty Act. By contrast, an actuarially determined gratuity liability, while not deductible as a debt or charge, had to be reflected as a commercial burden in open-market valuation under section 36. The court held that a prudent purchaser would factor in such scientifically ascertainable contingent liabilities, and the liability therefore reduced the estate's market value for estate duty purposes. Case-Laws Income Tax Thu, 07 Oct 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19783