9911796707
TMI Blog1984 (10) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... Controller increased its value by Rs. 1,00,000 on the ground that the value of Rs. 7,14,000 was determined by the Valuation Officer of the IT department under s. 16A(6) of the WT Act as on 31st March, 1979 and since the prices were continuously rising, he made an addition of Rs. 50,000 for each year. This was objected to by the accountable person before the Appellate Controller, who considered the increase to be proper and confirmed the addition. At the hearing before us, the ld. counsel for the accountable person contended that the accountable person had adopted the value as determined by the Valuation Officer and that value was itself on the higher side and if, for the purpose of wealth-tax, the assessee had claimed the benefit so s. 7(4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Officer's report, we find that the appears to have adopted the land rate @ Rs. 4 per sq. ft. on the ground that a portion of the bungalow in question was sold at Rs. 4 per sq. ft. in June, 1977. Sale of such a small portion from a big bungalow cannot serve as a good example in determining the value of the whole property as one unit. The property in question is situate in a cantonment, where as all of us know, the restrictions on the use of land and sub-division of plots are very strictly complied with and that is why we find that while the cities have become over-crowded with the influx of population and legal as well as illegal building activity, the cantonments remain almost free from this. Therefore, a big bungalow in a cantonment cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in CIT vs. Official Liquidator, Shanmugar Mills (In liquidation) (1984) 40 CTR (Mad) 114 : (1984) 1 ITC 129 (Mad). The Hon'ble Court described as erroneous the Tribunal's approach on the basis that since the purchaser had successfully worked the mills after its purchase, the company should be taken to have a goodwill. The court further observed that in order to find out whether the assessee-company had acquired any goodwill, various factors and circumstances have to be taken into account; whether the company had acquired a benefit arising from its connections and reputations, the personality and business rectitude of the owners, the nature and character of the business, its name and reputation, its location, its impact on the contempo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital employed played in earning the profits and has also given adjustment for the personal effort of the deceased at 20 per cent of the gross income. The Asstt. Controller has mentioned that the deceased was actively engaged in the firm's business and he was the main person looking after the business. That part of the profit, which was earned by the personal qualities of the deceased would not be available to his legal heirs and cannot be deemed to have passed to them as an asset. Further, he has taken the average capital employed for the last five years at Rs. 1,77,696 on the basis of the firm's books of account. But while determining the value of the property passing on death, he has determined the market value of the assets of the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed as expenses for the marriage of the children of the deceased. The assessee is said to have left a son and a daughter. He was a Parasee. There is not statutory provision in the ED Act providing for any such exemption. Reliance was placed on a ruling of the Andhra Pradesh High Court in CED vs. Estate of Late Nookayya Setty 1978 CTR (AP) 326. A report of the case shows that it was a case of an HUF, the Kerta of which died and the Tribunal had allowed a deduction on account of the marriage expenses of the daughters. The question before the Hon'ble High Court was merely whether the amount allowed on that account was reasonable. As regards the question whether such amounts could at all as be allowed in law, the Hon'ble High Court held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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