DHAN KAUR Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) The following question of law has been referred at the instance of the accountable person under Section 64(1) of the Estate Duty Act, 1953 (for short, "the Act").

(2.) Joginder Singh died on November 3, 1981. His widow, Smt. Dhan Kaur, filed a return under the Act, furnishing the account of the estate left by her late husband and showing the principal value of half property as assessable under the Act. The assessment of estate duty was made by the Assistant Controller of Estate Duty on February 19, 1983, on one-half of the net estate of the deceased, valued at Rs. 2,54,483. Thus, as intended by the accountable person, the assessment was made on only half of the estate of the deceased. The late Joginder Singh was the karta and sole surviving male coparcener of his Hindu undivided family (HUF). He was survived by his widow and a married daughter. He had left behind 19 acres of agricultural land valued at Rs. 3,12,645 and foodgrains, milch cattle, agricultural implements, etc., valued at Rs. 10,000. The value of half share of the deceased in the agricultural land, milch cattle, etc., was taken at Rs. 1,61,323 on the ground that the deceased was entitled to only half of the estate and was actually not an absolute owner of the property belonging to the Hindu undivided family.

(3.) The Assistant Controller of Estate Duty, on an audit objection, reopened the case subsequently by issuing a notice to the accountable person under Section 59 of the Act. A view was taken that the deceased, being the sole surviving male coparcener, was competent to dispose of the entire Hindu undivided family property in whatever manner he liked. The entire property thus belonged to him as an individual as well as karta of the Hindu undivided family. The Assistant Controller then proceeded to assess the entire value of the Hindu undivided family property instead of its half value which had been assessed earlier.