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Issues involved:
The issue involved in this case is whether the shares of the sons of the deceased in the joint family property could be considered for determining the rate of tax applicable to the share of the deceased in the joint family properties under section 34(1)(c) of the Estate Duty Act, 1953. Judgment Details: The deceased had a co-parcenary interest in the joint family property. The Assistant Controller and the Appellate Controller of Estate Duty held that the value of the interest of the sons of the deceased in the joint family property should be included for determining the rate of duty applicable under section 34(1)(c) of the Estate Duty Act. However, the Tribunal, following a Madras High Court decision, directed not to include the value of the sons' interest in the joint family assets for determining the rate of duty. The Department's counsel argued that the Tribunal erred in ignoring the provisions of section 34(1)(c) and pointed out a contrary decision by the Andhra Pradesh High Court upholding the validity of the same provision. Despite acknowledging the Madras High Court's decision striking down the provision, it was contended that the Tribunal should have followed the Andhra Pradesh High Court's decision. Several other High Courts had also upheld the validity of the provision. No representation was made on behalf of the respondent accountable person. The Court noted the conflicting High Court decisions on the validity of section 34(1)(c) but emphasized that the Tribunal, as well as the Court in its reference jurisdiction, cannot consider the vires of the provisions of the Act. Despite other High Courts upholding the provision's validity, the Tribunal was deemed unjustified in ignoring section 34(1)(c). Consequently, the Court answered the question of law in the affirmative and in favor of the Revenue, without any order as to costs.
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