Law:

Section:

Section 36, read with section 33(1)(n), of the Estate Duty Act, 1953, read with rule 14 of the Estate Duty Rules, 1952 and rule 1BB of the Wealth-tax Rules, 1958 - Valuation of estate - Whether where residential house belonging to deceased (which is to be specified by accountable person at his or her option) is assessed to wealth-tax on valuation date immediately preceding date of deceased's death, it is mandatory for authorities under Estate Duty Act to adopt valuation in respect of said property under Wealth-tax Act - Held, yes Section 44 of the Estate Duty Act, 1953 - Deductions - Deceased had withdrawn Rs. 3,14,345 from firm in which he was a partner and had invested same in construction of house which passed on on his death - Accountable person claimed deduction of said debt amount from aggregate value of property passing on on death of deceased - Assistant Controller disallowed deduction on ground that debt amount was allowable only from value of house property and not from aggregate value of property - Tribunal allowed claim of accountable person - Whether since amount withdrawn by deceased was not a loan taken by him from any bank or financial institution which had created any charge over house property constructed with said funds, Tribunal was justified in treating it as a general debt allowable from aggregate value of property - Held, yes FACTS The deceased had withdrawn Rs. 3,14,345 from the firm in which he was a partner and had invested the same in the construction of the house which passed on on his death. The accountable person made valuation of the said house property in accordance with the provisions of rule 1BB of the 1958 Rules at Rs. 51,188 and claimed exemption under section 33(1)(n). The accountable person also claimed deduction of Rs. 3,14,345 from the aggregate value of the property passing on on the death of the deceased, under section 44. The Assistant Controller held that the said building had been constructed a short time before the death of the deceased for Rs. 3,14,345 and, accordingly, valued it at Rs. 3,14,345. He granted deduction of Rs. 3,14,345 from the value of the house property and, therefore, value of the said property…

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