CONTROLLER OF ESTATE DUTY Vs. GEETABEN VIPINBHAI SHAH

JUDGEMENT

(1.) The Income-tax Appellate Tribunal Ahmedabad Bench "A" has referred the following question of law for the opinion of this Court under Section 64 of the Estate Duty Act, 1953.

(2.) The Estate Duty account in respect of the estate of Dahyabhai Maneklal who passed away on 9.11.1962, was filed on 21.11.1963. The Assistant Controller of Estate Duty, Ahmedabad, in the assessment order made under Section 58(3) of the said Act worked out the value of the estate of the deceased in the H.U.F. and came to the conclusion that 1/5th share of the deceased in the HUF was of the value of Rs. 3,23,541/-. The interest of three lineal descendants of the deceased was valued at Rs. 9,70,623/- and this exercise was done for aggregation as contemplated by the provisions of Section 34(1) of the Act under which for the purpose of determining the rate of the estate duty to be paid on any property passing on the death of the deceased, all property so passing, and, where it consisted of a coparcenary interest, also the interests in the joint family property of all the lineal descendants of the deceased member were required to be aggregated so as to form one estate and the estate duty was to be levied thereon at the rate applicable in respect of the principal value thereof.

(3.) Estate Duty is to be levied in accordance with Section 35 of the Act upon the principal value, ascertained as provided in Section 5 of the Act, of all property, settled or not settled, which passes on the death of a person after the commencement of the Act. Under Section 7(1) it is, inter alia, provided that the property in which the deceased, or any other person had an interest ceasing on the death of the deceased, shall be deemed to pass on the deceased's death to the extent to which a benefit accrues or arises by the cesser of such interest, including, in particular, a coparcenary interest in the joint family property of a Hindu family governed by Mitakshara, Marumakattayam or Aliyasantana law.