RADHA DEVI SARAOGI Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) This reference, under Section 64(1) of the Estate Duty Act, 1953, has been made in the circumstances hereinafter stated.

(2.) One Ramjiwan Saraogi died on July 13, 1955. He was, at all material times, the karta of Hindu undivided family consisting of himself, his wife and two minor sons. The share of the deceased, in the undivided family, was, as such, only one-fourth. During the lifetime of the deceased, he effected a number of insurances on his own life. All the policies were, it is said, assigned by the deceased in favour of his wife. The total amount receivable under the said policies was Rs. 2,01,036.

(3.) In computing the principal value of the estate, for the purpose of assessment of estate duty, the question arose whether the insurance money, amounting to Rs. 2,01,036, should be treated as the absolute property of the deceased or the property of the Hindu undivided family, of which the deceased was the karta. The widow of the deceased, Sm. Radha Debi Saraogi, who is the accountable person, contended that the said sum of Rs. 2,01,036 should be treated as the property of the Hindu undivided family and the one-fourth share of the deceased therein should only be included in the principal value of the estate. The Assistant Controller of Estate Duty, Jamshedpur, who was the assessing authority in this case, rejected the contention put forward by the accountable person, held that the money receivable under the insurances was the individual property of the deceased and assessed the same to duty. The reasons which weighed with the Assistant Controller were :