Law: Estate Duty Act, 1950

Section: 38

[Estate Duty Act, 1950(X of 1950)]........Section 38 (1)-Valuation- Agricultural land-Valuation on the basis of sales which had taken place in the vicinity-Whether relevant and proper-Held yes-Formula of valuation adopted in the case of Ahmad Khan v. Controller of Estate Duty- Whether of universal application-Held no. The Controller has based his valuation on the basis of sales which had taken place in the vicinity and such sales were clearly relevant in terms of sub-section (1) of Section 38 of the Estate Duty Act, which provides that "the principal value of any property shall be estimated to be the price which, in the opinion of Controller, it would fetch if sold in the open market at the time of the deceased's death". The formula adopted in the case of Ahmad Khan was dictated by the peculiar facts and circumstances obtaining therein. That case does not lay down any formula of universal application. Case referred to: Ahmad Khan v. Controller of Estate Duty (P.L.D. 1969 S.C. 123 ; (1969) 23 Taxation 11(S.C.). ORDER [The judgment of the court was delivered by ANWARUL HAQ J.].- This petition seeks leave to appeal against an order made by a Division Bench of the Lahore High Court on the 26th of August 1975, by which it has been held that the formula adopted by the Supreme Court in the case of Ahmad Khan v. The Collector of Estate Duty [P.L,D. 1969 S.C. 123] for the purpose of valuation of agricultural lands for the levy of estate duty, was limited to the peculiar facts and circumstances of that case and was not intended to be a rule of universal application. The dispute relates to the valuation of agricultural lands left by Syed Ghulam Mahbub Subhani, who died on the 4th of March 1969. The value declared by the heirs of the deceased was Rs. 3,79,576, but this was not accepted by the Deputy Controller of Estate Duty. It is not necessary to give details of the value assessed by the Deputy Controller, and the Controller of Estate Duty, and it is enough to state that by the final order made by the Tribunal the value has been assessed at Rs. 2,27,563, The Tribunal has repelled the contention raised on behalf of the petitioners that the valuation should be fixed on the…

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