TMI Blog2002 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ese appeals is whether the probable estate duty payable on the death of the life-tenant has to be taken into account and the value of the property will be diminished by that for charge of wealth-tax in the hands of the remainder man. The Revenue strongly relies upon a judgment of this court in Bharat Hari Singhania v. CWT [1994] 207 ITR 1, wherein this court while considering the valuation of the estate for the purpose of the Wealth-tax Act though arising under rule 1D of the rules therein held: "The contention of learned counsel, in this behalf, is rather involved if not obscure. The argument runs thus: section 7(1) says that the value of an asset shall be the price which such asset would fetch if sold in the open market on the valuat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn in Singhania's case [1994] 207 ITR 1 (SC), the Revenue contended that in view of the fiction created by the statute, there is no question of making any deduction from the market value of the property under any possible head; be it a payment to be made under a taxing statute or otherwise while determining the value of the estate for the levy of wealth-tax. Therefore, the Revenue contends, assuming that there is a possibility of any demand being made on the estate for the payment of estate duty, the same cannot be deducted from the actual market value of the property while assessing the property for wealth-tax. The High Court in the course of the order impugned in these appeals, has distinguished this judgment of the Supreme Court on facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ania's case [1994] 207 ITR 1, has in specific terms laid down the principle that in cases where the statute creates a legal fiction for determination of market value, no amount like provision for taxation, provident fund and gratuity, etc., can be deducted from the market value of the estate while evaluating the estate for the levy of wealth-tax. If this be the correct principle in law then it will not be possible for the respondents to contend that the value of the estate duty payable, if any, should be deducted from the market value of the estate while determining the wealth-tax. If the principle as we have understood it to be enunciated in Bharat Hari Singhania's case [1994] 207 ITR 1 (SC), is correct, then the same, in our opinion, runs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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