Judgment

KHANNA. J. :- This appeal by the Controller of Estate Duty on certificate is against the judgment of the Madras High Court whereby that court answered the following question referred to it under Section 64 (1) of the Estate Duty Act, 1953 (Act 34 of 1953) (hereinafter referred to as the Act) partly in favour of the assessee and partly in favour of the revenue.

"Whether, on the facts and in the circumstances of the case, the entire value of the property known as "Mayavaram Lodge" or any portion of its value is liable to be included in the principal value of the Estate of the deceased as property deemed to have passed on his death?

2. The matter arises out of the estate duty case of Shri R. Venkateswara Iyer who died on April 6, 1957. The respondent, Smt. Parvathi Ammal who is the widow of the deceased and is an accountable person in the case, filed statement relating to the estate of the deceased before the Assistant Controller of Estate Duty. The Assistant Controller determined the principal value of the estate to be Rs. 2,50,374/-. In computing the principal value the Assistant Controller took into account a sum of Rs. 1,50,000 on account of the value of property Known as "M