KANCHARLA KESAVA RAO Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE following question has been referred to this court under Section 64(1) of the Estate Duty Act of 1953 (hereinafter called " the Act"), by the Income-tax Appellate Tribunal, Hyderabad Bench :

(2.) THE facts relevant for the purpose of this reference are as follows :

(3.) THERE is no reason why the partition arrangement come to between the members of the joint family including the two widows should not be treated as an agreement or arrangement. According to the Twentieth Century Chamber's Dictionary, the word "disposition" means arrangement, distribution, plan for disposing one's property. The term " disposition " must have been intended to eover every mode by which property can pass by act of parties and, therefore, the said expression should be liberally construed. If so, the partition effected by the deed dated 16th June, 1943, would constitute an arrangement or an agreement and falls within the meaning of the expression " disposition ". Admittedly, the widow had no rights to the possession of the agricultural lands. For the first time under the said document, a life estate was created in her favour in respect of the 25 acres of agricultural land. This would certainly amount to conferment of a life estate under the partition. THEREfore, we are of the opinion that the conferment of the life interest is a disposition falling within Section 24 of the Act.