Shri Chander Singh, Accountant Member - (1.) THIS appeal by the accountable persons, Mrs. Piroja H. Kanga, wife of the deceased and Dr. Sarosh H. Kanga, son of the deceased has been directed against the order of the Appellate Controller of Estate Duty. Inasmuch as 25 grounds have been raised in this appeal. These grounds contain two issues with respect of the maintainability of the appeal before the Appellate Controller of Estate Duty and the valuation of the immovable properties. The brief facts of the case are as under.
(2.) Late Shri Hirji Hormasji Kanga died on 25-12-1980 leaving behind : (1) Mrs. Piroja H. Kanga, his wife, (2) Dr. Sarosh H. Kanga, son, (3) Shri Homi H. Kanga, son, and (4) Shri Rohinton H. Kanga, son. The deceased has also left behind a will in which it was provided that in the event of disagreement on any issue between the Executors and Trustees, the opinion of his wife Smt. Piroja H. Kanga shall be final. The dispute amongst the Executors and the Trustees of the will arose on account of valuation of certain immovable properties. By a Reclamation Lease dated 1-3-1933, late Shri Hirji Hormasji Kanga was given on lease 399 acres of land in Thane district for a period of 999 years for reclamation and subsequent agricultural use. He had also acquired occupancy rights in other adjoining lands marking a total of 412 acres. By his letter dated 7-10-1951, the Collector of Thane permitted Shri Hirji H. Kanga to use the above-mentioned lands for the manufacture of salt.
(3.) HOWEVER, the said land of 412 acres was converted into a partnership property by a deed of partnership dated 27-3-1980 effective from 1-7-1979. In the said partnership late Shri Hirji H. Kanga and his wife Smt. Piroja H. Kanga along with their three sons mentioned above became the partners. Under the terms of the partnership deed, late Shri Hirji H. Kanga and his wife Smt. Piroja H. Kanga brought their respective interest in the aforesaid lands by way of capital contribution to the said partnership business. The said deed of partnership provided that late Shri Hirji H. Kanga and Smt. Piroja H. Kanga would not look after the day-to-day activities of the business, which would be done by the three new partners. The Deed further provided that late Shri Hirji H. Kanga and Smt. Piroja H. Kanga would not be bound to contribute any further amount by way of loan or capital and Mr. Homi, Sarosh and Rohinton would contribute, provide and procure whatever capital was required for the purpose of carrying on the business.;