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Interpretation of section 34(1)(c) of the Estate Duty Act regarding aggregation of shares for estate duty calculation. Analysis: The case involved a reference under section 64(1) of the Estate Duty Act regarding the aggregation of shares for determining the dutiable estate of a deceased individual. The dispute arose from the estate of a deceased individual who left behind five sons and a wife, with one son having predeceased him. The question at hand was whether the share falling to the widow of the predeceased son could be aggregated under section 34(1)(c) of the Act for estate duty calculation. The Assistant Controller of Estate Duty initially aggregated the share falling to the widow of the predeceased son for determining the estate duty payable. However, on appeal, the Appellate Controller excluded the widow's share from aggregation, contending that she was not a lineal descendant of the deceased. The Revenue appealed this decision, leading to the reference to the High Court. The key provision in question was section 34(1)(c) of the Act, which pertains to the aggregation of shares for estate duty calculation. The section mandates that the interests of lineal descendants must be aggregated with the coparcenary interest of the deceased for determining the estate duty. It specifically states that only the share of lineal descendants should be considered for aggregation. The High Court analyzed the provision and relevant case law, emphasizing that the widow of the predeceased son could not be considered a lineal descendant of the deceased. The court referred to a previous judgment by the Calcutta High Court which highlighted the importance of ascertaining the principal value for aggregation, which is the share of the deceased in the joint family property. The court reasoned that if a partition had occurred before the deceased's death, the widow would have been entitled to a share under the Hindu Succession Act, but that share does not qualify as the interest of a lineal descendant. Ultimately, the High Court upheld the decision of the Tribunal, ruling that the share falling to the widow of the predeceased son cannot be aggregated under section 34(1)(c) of the Act for estate duty calculation. The court provided a detailed analysis based on the statutory provision and relevant legal principles, leading to the affirmation of the decision against the Revenue.
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