2002 (11) TMI 4

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....e estate for the purpose of the Wealth-tax Act though arising under rule 1D of the rules therein held: "The contention of learned counsel, in this behalf, is rather involved if not obscure. The argument runs thus: section 7(1) says that the value of an asset shall be the price which such asset would fetch if sold in the open market on the valuation date. In other words, the sub-section creates a fiction of sale of such asset on the valuation date for the purpose of determining its market value. Once a fiction is created, it must be carried to its logical extent and the court should not allow its imagination to boggle by any other considerations. If an asset is sold, it would be subject to capital gains tax. For finding out the net wealth r....

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....that there is a possibility of any demand being made on the estate for the payment of estate duty, the same cannot be deducted from the actual market value of the property while assessing the property for wealth-tax. The High Court in the course of the order impugned in these appeals, has distinguished this judgment of the Supreme Court on facts and has placed reliance on another judgment of this court which, according to the High Court, covers the facts involved in the case before it, i.e., the case of CWT v. Trustees of H.E.H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555. Mr. S. Ganesh, learned senior counsel appearing for the respondent, contends that the High Court was justified in relying upon the judgment of this court....