36. Principal value how to be estimated.
The principal value of any property shall be estimated to be the price which, in the opinion of the Controller it would fetch if sold in the open market at the time of the deceased' s death.
In estimating the principal value under this section the Controller shall fix the price of the property according to the market price at the time of the deceased' s death and shall not make any reduction in the estimate on account of the estimate being made on the assumption that the whole property is to be placed on the market at one and the same time: Provided that where it is proved to the satisfaction of the Controller that the value of the property has depreciated by reason of the death of the deceased, the depreciation shall be taken into account in fixing the price.
1[ Notwithstanding anything contained in sub- section (1) or sub- section (2), the principal value of one residential house or part thereof belonging to the deceased (which the accountable person may at his option specify in writing in this behalf) shall be.--
where the value of such house or part is included in computing the net wealth of the deceased for the purposes of making an assessment under the Wealth- tax Act, 1957 (27 of 1957 ) (hereafter in this sub- section referred to as the Wealth- tax Act) in respect of his net wealth on the valuation date immediately preceding the date of his death, the value as taken by the Wealth- tax Officer for the purposes of such assessment; and
in any other case, the value of such house or part,--
on the said valuation date; or
where such house or part was constructed, acquired or otherwise became the property of the deceased after the said valuation date, on the date of his death, as determined by the Controller in accordance with the provisions of the Wealth- tax Act and the rules made thereunder; and, for this purpose, in a case where the provisions of sub- section (4) of section 7 of that Act apply, the provisions of that sub- section shall have effect as if the words" throughout the period of twelve months immediately preceding the valuation date", occurring therein, had been omitted and as if the references therein to the option of the assessee had been references to the option of the accountable person. Explanation 1.-- Where the value adopted to be the value of a house or part in accordance with the provisions of clause (a) of this sub- section is subsequently varied by an order in any proceeding under the Wealth- tax Act, the value as so adopted shall be deemed to be a mistake apparent from the record within the meaning of section 61 and the Controller shall rectify the order, if any, passed by him, by substituting for the value as so adopted the value as so varied and the provisions of the said section shall apply accordingly, the period of five years specified in that section being reckoned from the date of the order under the Wealth- tax Act varying the value of the house or part. Explanation 2.-- For the purposes of this sub- section, the expressions" net wealth"," valuation date" and" Wealth- tax Officer" shall have the same meanings as in the Wealth- tax Act.]