Law:

Section:

Section 36 of Estate Duty Act, 1953 - Principal value - How to be estimated - Deceased had obtained a mica mining lease dated 30-10-1939 from Government for a period of 30 years - Thereafter, Mines and Minerals (Regulation and Development) Act, 1948, came into force whereunder any lease granted after commencement of Act was to enure only for period of 20 years and Government was authorized to frame rules to reduce period or alter period so as to being it in conformity with provisions of Act - Accordingly, a notification was issued on 4-9-1956 containing Mining Lease (Modification of Terms) Rules, 1956 which was published in Gazette on 15-9-1956 - In meanwhile, deceased died on 5-9-1956 - Pursuant thereto, Controller issued a notification dated 27-6-1959 reducing period of lease entered into prior to commencement of Act to a period of 21 years - Accounting party argued that since controller had fixed period of lease at 21 years from October, 1939, only 4 years of unexpired lease remained - Deputy Controller of Estate Duty rejected said argument on ground that rules first came into effect on 15-9-1956 which was after death of deceased and was not relevant to valuation of mine - Whether action to be taken under rules was imminent and any person who would be called upon to make an offer for unexpised portion of lease would certainly take possibility of reduction in consideration - Held, yes - Where since these was no evidence to show that any person offering to purchase unexpired period of lease would value it on basis of 8 years, it could be said that Tribunal and merely guessed as reasonable period of 8 years - Held, yes - Whether, therefore, period of lease was to terminate 21 years from date of its commencement in 1939 and a period of 4 years was to be adopted as basis for valuation of mines - Held, yes FACTS The estate of the deceased comprised among other properties a mica mining lease which she had obtained from the Government for a period of 30 years under a lease dated 30-10-1939. However, the Mines and Minerals (Regulation and Development) Act, 1948, came in force whereby any leases granted after the commencement of the Act were to only enure for a period…

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