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Section 36(1) of the Estate Duty Act, 1953 - Valuation - Principal Value - Land acquisition (Bombay amendment) act, 1948 was in force on relevant date of valuation of deceased's land which was to be sold at an agreed price - Said act was subsequently declared void ab initio - Whether in determining principal value of deceased's land, provisions of said act should be considered - Held, on facts, no - Whether words "if sold" in section 36(1) create a fictional position under which one has to assume and proceed to value property on the basis that there was open market in which property could be sold - Held, yes FACTS M died on 12-1-1962. On 7-12-1959, she had entered into an agreement with a co-operative society S to sell some land belonging to her for Rs. 3,56,708. The deceased vendor was to convey the said property within five years from the date of agreement and she handed over possession immediately in consideration of which the vendee S agreed to pay rent of Rs. 16,835 per month till the conveyance was executed. On 21-12-1959, the Government of the erstwhile State of Bombay issued a notification under section 4 of the Land Acquisition Act, 1894, declaring that the said land was likely to be needed for public purpose of construction of houses of a housing co-operative society H. This notification was subsequently cancelled by the Government of Gujarat by its notification dated 17-2-1962, admittedly after M's death. The land was eventually sold for the agreed consideration,i.e., Rs. 3,56,708. In the estate duty return filed by the accountable person, the value of the said land was shown at Rs. 2,00,000 as on 12-1-1962, the date of M's death, on the ground that, in view of the Land Acquisition (Bombay Amendment) Act, 1948 (which froze the amount of compensation payable, for lands acquired, at the price as on 1-1-1948), the price to be taken into consideration would be that prevailing on 1-1-1948 and not that agreed upon between M and S. The Assistant Controller rejected this contention in view of fact that the Supreme Court had, subsequently (in October 1964), declared the said Amendment Act void ab initio and valued the land at Rs. 3,56,708. On appeal, the…

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