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Issues:
1. Whether only 50% of the estate passed on the death of the deceased? 2. Whether the act of adoption amounted to a disposition under the Estate Duty Act? Analysis: Issue 1: The case involved the question of whether only 50% of the estate passed on the death of the deceased. The deceased, Ahalya Bai, had adopted the accountable person, Krishnakumar. The Tribunal held that 50% of the family properties passed to the accountable person due to his becoming a coparcener in the family. However, the Revenue contended that as Ahalya Bai had become the absolute owner of the property, the entire property should pass to the accountable person on her death. The Revenue argued that the Tribunal's view was contrary to the provision of section 12 of the Hindu Adoptions and Maintenance Act, which states that the adopted child shall not divest any person of any estate which vested in him or her before the adoption. The Court agreed with the Revenue's argument and held that no portion of the property could be divested from Ahalya Bai in favor of the accountable person. Issue 2: The second issue raised was whether the act of adoption amounted to a disposition under the Estate Duty Act. The Court's decision on the first issue rendered the second question moot as it was contingent on the outcome of the first question. Since the Court ruled that no portion of the property passed to the accountable person, the question of whether the act of adoption constituted a disposition did not require separate consideration. In conclusion, the Court answered the first question in the negative, in favor of the Revenue, based on the interpretation of the Hindu Adoptions and Maintenance Act. Consequently, the second question did not require further consideration.
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