TaxTMI 
TaxTMI 
1985 (2) TMI 91
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....ah is the accountable person. He filed a statement dt. 27th Feb., 1981 admitting the principal value of the estate of the deceased at Rs. 3,91,876. The deceased lived in Santhapet, Nellore. Admittedly this is a joint family house in which the deceased was having half share. The value of this house was admitted at Rs. 32,000 whereas the value was enhanced by the Asstt. CED to Rs. 35,000 and the half share of the deceased was held to be exempt and the other half of Rs. 17,500 was included under s. 34 of the ED Act for rate purposes. 3. It is contended before the Appellate CED on behalf of the accountable person that the whole of the house should be taken to be exempt under s. 33(1)(n) in view of the Andhra Pradesh High Court decisions in C....
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....und bears no merit and hence it is dismissed. 5. The second point is about the addition made of revaluation of stocks of the firm M/s Vakicherla Veeraiah, Nellore in which the deceased used to have half interest. The stocks were disclosed in the account furnished to the Asstt. Controller at the cost price. As already stated the deceased was having half interest in the firm. The Asstt. Controller did not accept the cost price as the real market value of the closing stock should be taken into consideration under the provisions of s. 36 of the ED Act. The Asstt. Controller estimated the profits which would be derived on the sale of the stock at 10.8 per cent. The total value of the closing stock was stated to be of the value of Rs. 2,00,242....
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....f the closing stock. Secondly the trading results as admitted by the firm has been accepted by the ITO and the share of profit of the deceased upto his date of death having been included in the estated, there is no necessity to make any addition by way of share of estimated future profits to which the accountable person may not be entitled to. The Appellate CED, therefore, deleted the addition of Rs. 9,804. The cancellation or the deletion of the addition of Rs. 9,804 is sought to be questioned in this appeal by the Revenue. 7. However, the matter is directly covered by the Calcutta High Court decision reported in (1979) 119 ITR 182 [Surajmall Gouti vs. CED]. In that case also one of the assets viz., jute press was sought to be revalued ....
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....of dissolution. In that view of the matter the Calcutta High Court held that it does not appear to them that the market value of the share of the partner in a firm can be correctly determined by adding up the break-up value of each and every asset of the firm. In the case before them the estate duty authorities accepted the value of the share of the partner as shown in the balance sheet of the firm to start with but added thereto the estimated value of one individual asset viz., jute press. This computation, the Hon'ble High Court held in their view is erroneous. At the same time they clarified that the authorities could have rejected the balance sheet value and computed the value of the entire share of the deceased on the basis of what it ....
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....lued separately. It is exactly this procedure it is held to be not valid by the above said Calcutta High Court decision. The above is not the lonely dedcision existing in the field. There is another decision rendered by the Madhya Pradesh High Court where the question whether the closing stock value can be taken at the market price on the date of the death of the deceased came directly for consideration before the Hon'ble Madhya Pradesh High Court in Smt. Gunvantibai vs. CED (1981) 21 CTR (MP) 9 : (1981) 130 ITR 122 (MP). At p. 123 in the headnote both the problem as well as the decision of the Hon'ble High Court over it were mentioned as follows: "The Asstt. Controller enhanced the value of the deceased's share of investment in the firm....