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Valuation of life interest in property for estate duty assessment under the Estate Duty Act, 1953. Detailed Analysis: The judgment involves a reference under section 64(3) of the Estate Duty Act, 1953, regarding the valuation of the life interest in a property for estate duty assessment. The deceased had a life interest in a property at 69, Park Street, Calcutta. The Assistant Controller valued the life interest at Rs. 5,62,000, while the accountable person valued it at Rs. 3,94,000 based on a valuation by approved valuers. The Appellate Controller determined the property value at Rs. 5,15,000 based on rental income computation and a multiplying factor of 14. On second appeal, the Tribunal valued the property at Rs. 4,06,962, considering rental income, collection charges, repairs, and applying a multiplying factor of 12.5. The Controller raised questions challenging the Tribunal's valuation methodology under section 64(1) of the Act. The Tribunal rejected the reference application, leading to a court application under section 64(3). The court reframed the questions to focus on whether the Tribunal correctly equated the deceased's life interest with fractional ownership and applied a multiplying factor of 12.5 for property valuation. The court analyzed the Tribunal's decision and relevant legal principles. It noted that life interest passing under section 5 of the Act should be valued according to section 36, not equated with fractional ownership. Despite disagreeing with the Tribunal's reasoning, the court found the property valuation methodology using a specific multiplier reasonable in this case, citing relevant Supreme Court decisions on property valuation methods. The court considered submissions from both parties, emphasizing that the valuation of property is primarily a question of fact. It highlighted the difference in valuation reports and methodologies used by different parties but ultimately upheld the Tribunal's valuation based on the facts and circumstances of the case. In conclusion, the court held that while the Tribunal erred in equating the life interest with fractional ownership, it was correct in applying a multiplying factor of 12.5 for property valuation. The Controller was directed to bear the costs of the reference. Judge Dipak Kumar Sen agreed with the judgment.
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