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Issues Involved:
1. Interpretation of "disposition" under the Estate Duty Act, 1953. 2. Applicability of sections 9, 27, and 2(15) of the Estate Duty Act. 3. Whether a partition or relinquishment within two years of death constitutes a "disposition" and attracts estate duty. Detailed Analysis: 1. Interpretation of "Disposition" under the Estate Duty Act, 1953: The core issue revolves around whether a relinquishment or partition of joint property, where the deceased takes less than his due share, constitutes a "disposition" under the Estate Duty Act, 1953. The judgment emphasizes that the term "disposition" is not a term of art but plain English with a wide import, expanded further by Explanation 2 to section 2(15) of the Act. The court clarifies that "disposition" includes the extinguishment of rights at the expense of the deceased, benefiting another person. This broad interpretation is intended to cover various forms of property transfers, even those not traditionally considered as such, to prevent evasion of estate duty. 2. Applicability of Sections 9, 27, and 2(15) of the Estate Duty Act: Section 9 deals with gifts made within two years before death, deeming them to pass on the death of the deceased. Section 27 treats dispositions made by the deceased in favor of relatives as gifts unless made for full consideration. Section 2(15) provides an inclusive definition of "property," expanded by Explanation 2 to cover the extinguishment of rights. The court emphasizes the need to read these sections together to understand the legislative intent and the broad scope of the term "disposition." The court rejects the narrower interpretation that would exclude unequal partitions or relinquishments from the ambit of "disposition," thereby affirming that such transactions attract estate duty. 3. Whether a Partition or Relinquishment within Two Years of Death Constitutes a "Disposition" and Attracts Estate Duty: The court examines the facts of the Gujarat and Madras appeals, where the deceased, within two years of death, entered into partitions or relinquishments, taking lesser shares than their legal entitlement. The court holds that these transactions constitute "dispositions" under the Act, as they result in the extinguishment of the deceased's rights and confer benefits on the accountable persons. The court underscores that the legislative intent behind the Estate Duty Act is to prevent the evasion of estate duty through such transactions, ensuring that the duty is levied on the actual value of the estate passed on death. Conclusion: The judgment affirms that partitions or relinquishments within two years of death, where the deceased takes less than his due share, are considered "dispositions" under the Estate Duty Act, 1953, and attract estate duty. The court's interpretation of sections 9, 27, and 2(15) emphasizes the broad scope of the term "disposition" to include various forms of property transfers, ensuring the effective implementation of estate duty provisions. The appeals are decided accordingly, with Civil Appeal No. 1095 of 1970 allowed and Civil Appeal No. 1677 of 1973 dismissed, with parties bearing their respective costs.
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