Law:

Section:

Section 36 of the estate duty act, 1953 read with rule 7(e) of the estate duty rules, 1953-Principal value-Determination of-Whether share of a deceased partner in a firm could correctly be determined by adding up breaking-up value of assets of firm-Held, no Facts The deceased was a partner in a firm having one-eighth of the share therein. The firm had a jute press consisting of five godowns held under a lease of sixty-one years. The firm had substantial income from letting out of the godowns. The partnership deed provided that, on the death or retirement of a partner, the partner or his legal representative would be paid back the capital and the value of his share and interest and, for that purpose, a balance-sheet would be prepared. The deceased died or 18-3-1966. The accountable person, being the executor under his Will, filed a return declaring the net principal value of the estate at Rs. 2,52,249 including share in the firm. The Assistant Controller called upon the ac-countable person to explain the difference between the share of the deceased as per balance-sheet and that shown in the return and also to show cause why the value of the jute press should not be computed on the basis of the actual rental income. The accountable person explained that the value of the deceased's interest in the firm had wrongly been shown under a misapprehension and that the correct value of the share was Rs. 1,96,217.89 as shown in the return. As regards the value of the jute press, it was pointed out that a partner had no interest in a specific asset of a firm and that the partner's right was confined to his share after finalising the accounts. The accountable person also filed a valuation of the jute press by a valuer, calculated on the basis, of the gross yearly income, for the available letting space. The Assistant Controller, rejecting the assessee's contention, determined the value of the jute press on the basis of actual rental applying the formula of a number of years' purchase on the net income and added the share of the excess value thus arrived at to the principal value of the estate. Before the Appellate Controller, it was contended, that according to the…

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