1996 (8) TMI 24

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....lowing question : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the value of the closing stock of the firm, Popular Automobiles, was to be enhanced to the extent of the market price obtainable in retail sales?" There is no dispute with regard to the basic position that for the purposes of levy of estate duty under the Estate Duty Act, 1953,....

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...., Trichur, has not travelled far and wide in any sense of the situation but has added this amount of special discount at 12.5 per cent. to the closing stock shown by the accountable person in the estate duty return and arithmetically proceeded further to determine 1/5th share in regard thereto. Thus, the factual matrix is beyond all pales of controversy. It is as follows : "The firm is valuing i....

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....concerns in large quantities and so the firm is getting special discount on the purchase and as such the cost of purchase would be less than the dealer's price prevailing in the open market. Further, the principal value of any property shall be estimated as per section 36 of the Estate Duty Act which stipulates that it should be the price, which in the opinion of the Controller, it would fetch if ....

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....e of closing stock is increased by 12 1/2 per cent. and the deceased's 1/5th share added . . . Rs. 33,531." It would be apparent that whatever may be the situation, the assessing authority---Assistant Controller of Estate Duty, has considered only one aspect of special discount to observe that the cost of purchase is bound to be less than the dealer's price prevailing in the market. He has not ch....