TMI Blog1988 (9) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... AAC. The AAC had considered the decision of their Lordships of the Supreme Court in the case of CWT vs. Vysyaraju B. Moorthy Raju (1985) 45 CTR (SC) 217 : (1985) 152 ITR 454 (SC) and confirmed the view taken by the WTO. 2. Being aggrieved the assessee came in second appeal before us. Learned counsel for the assessee, Sri Mukadam submitted that the case referred by the AAC in his order is not applicable in the case of this assessee as the issue in the case of the assessee is what should be the value of the outstanding fees, which has not been considered by their Lordships of the Supreme Court in the case of Vysyaraju B. Moorthy Raju. He submitted that similar issue was considered by the Tribunal in the case of Prem Chopra in WTA Nos. 87 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was considered by the Tribunal in the case of Prem Chopra for the sake of consistency, and reasons given therein, we direct the WTO to ask the details of each outstanding fees and estimate reasonable value of the assessee's right in those outstanding fees on the valuaiton date and include the same in the wealth of the assessee. 3. The next issue for our consideration in this appeal is whether the AAC erred in not accepting the value of the L.I.C. Annuity policies of Rs. 2,45,515 as per the valuation report of the Actuary and confirming the value of Rs. 7,01,471 adopted by the WTO. The relevant facts are that the assessee claimed that the annuity policies are exempt under s. 5(1)(vi) of the Act and relied not the decision in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ependent on human life and life expectancy, it is not understood how the same can be valued in accordance with the actuarial valuation. Secondly, the valuer has deducted 45 per cent towards income-tax liability and another 4 per cent towards expenses on collection. The rate of interest assumed for discounting was 10 per cent. The WTO did not discuss how and why this system of valuation and deduction cannot be allowed. Neither the AAC considered the validity of this system of valuation. The learned AAC simply considered the method adopted by the WTO to be more logical and sound without any basis. In so far as the question of deductibility of income-tax liability is concerned, the Special Bench in the case of Rajendra Kumar Tuli vs. WTO 8th ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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