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TMI Blog1979 (8) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... income is Rs. 1,20,734 and average capital of last three years is Rs. 4,36,981 Reasonable expected return is 13 per cent which works out at Rs. 56,000 Rs. 56,000 Add: Remuneration to partners @ Rs. 5,000 each for 7 partners. Rs. 35,000 . Rs. 91,000 Super profit of the firm Rs. 1,20,734 ( ) Rs. 91,000 . Rs. 29,734 This is multiplied by four years which is purchases to arrive at the goodwill Rs. 1,18,936 1/7th share of deceased Rs. 16,990 4. The Appl. CED, keeping in view the fact that all the partners of the firm were qualified engineers, increased their remuneration from Rs. 5,000 to Rs. 6,000 per annum and thus worked out the share of the deceased in the goodwill of the firm at Rs. 12,990. The accountable person is dissatisfied with the finding of the Appl. CED. 5. Before us, it is stated by the representative of the accountable person that the expected return at 13 per cent on the capital of Rs. 4,36,981 is on the lower side and that the remuneration to each of the partners at Rs. 6,000 per annum who were qualified engineers was inadequate. In our opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Institution of Valuers, the depreciation for the 20th year of the property at 2.5 per cent on the written down value for the first class building should be 39.71 per cent. On the basis of this table, we are of the opinion that it would be fair to allow depreciation at 40 per cent. The Asstt. CED is directed to work out the value of the property accordingly. Addition under s. 34(1)(c) r/w s. 33 (1)(n) 10. The Asstt. CED estimated the value of the residential house belonging to the HUF of the assessee, after allowing depreciation, at Rs. 2,05,957. He granted the exemption of Rs. 25,725 in respect of 1/8th share of the deceased in the house under s. 33(1)(n) of the ED Act, 1953 and added the sum of Rs. 1,54,468, being the value of the shares of six lineal descendants, for rate purposes under s. 34(1) of the said Act. In the course of appellate proceedings before the Asst. CED, the accountable person raised an objection to the aggregation of the share of lineal descendants to the value of the property for rate purpose, but the same the rejected. The assessee is dissatisfied with the finding of the Appl. CED. 11. Before us, it is stated by the ld. representative of the accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be the value which such property would fetch, if sold in the open market at the time of the deceased's death. All the general principles of valuation are applicable for finding out the value of the joint family property. The words ".... the provisions of the Act, so far as may be, shall apply" indicate that not only the provisions of the Act relating to the valuation are attracted but the provisions relating to chargeability will also apply. Thus, property gifted or settled by the joint family within the statutory period will also be included for the purpose of determining the share of the deceased in the joint family property. Similarly, according to the commentary at pages 450 and 451 of Law Practice by Shri V. Balasubramanian (1968 Ed.), in arriving at the property liable to partition, the following (which may not pertain to the deceased member at all or him alone) should be deducted viz. (i) debts payable out of the joint family property (2) personable debts of the father not tainted with illegality (3) provision for maintenance of disqualified heirs and female members (4) marriage expenses of unmarried daughters etc. Thus, the provisions of the Act relating to the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the Act, so far as may be, for the determination of the value of the property of an individual when he died, for the purpose of estate duty, shall be applied for determining the market value of the total of the joint Hindu family properties. This is merely for the purpose of finding out the total value of the entire properties of the joint Hindu family, which is necessary in order to find out the value of the share of the deceased, which alone is taken to have passed on his death. xx xx xx xx Only one other aspect remains to be dealt with and that is, how can s. 33(1)(n) be applied. It is evident that the exemption relates to property. The property must be of the kind belonging to the deceased and it must have passed on his death in order that s. 33(1) may be applied. But there is limitation about the extent of the exemption.... That his (i.e. deceased's ) interest passed as a result of his death is not disputed. The difficulty, however, arises because the principal value of the house comes to Rs. 1,70,000 and the value of the half share to which the deceased was entitled to in the house comes to Rs. 85,000. The deceased had left one line ..... X X X X Extracts X X X X X X X X Extracts X X X X
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