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Assessment of estate duty on property received at partial partition in Hindu Undivided Family (HUF) - Determination of whether the entire property passed on the death of the deceased. Analysis: The judgment pertains to the assessment of estate duty on the property received by the deceased at the time of a partial partition in his HUF. The deceased was a member of an HUF involved in business, and a partial partition in 1955 resulted in him obtaining a half share. Subsequently, a firm was formed with equal shares among the deceased, his nephew, and the nephew's mother. The deceased was assessed to income tax as an individual. The issue revolved around whether the property obtained on partition belonged exclusively to the deceased or was part of a smaller HUF with his wife. The Asst. Controller initially held that the property belonged exclusively to the deceased, a decision upheld by the Appellate Controller and later restored by the Tribunal. The court analyzed the concept of ownership in an HUF, highlighting that female members generally do not have ownership rights in HUF property. As the deceased was the sole coparcener in his family, the entire property vested in him. The court differentiated between the status of an HUF for income tax assessment purposes and the determination of property passing on the death of a coparcener. Since the deceased owned the entire property, no other person had a share that would pass on his death. Sections 7 and 39(1) regarding valuation of joint family property apply when property is vested in multiple individuals, not in cases where the deceased is the sole coparcener. The court referenced a decision by the Allahabad High Court to support its interpretation. Additionally, a previous judgment by the same court involving a similar partition scenario was cited, emphasizing that in cases where the deceased had no son and the partition involved only specific family members, the entire property received on partition vested solely in the deceased. The court dismissed reliance on a previous Division Bench decision that suggested the wife had a half interest in the property, clarifying that such interpretation was incorrect. The court also distinguished cases related to the constitution of an HUF from the issue of property ownership within the family. In conclusion, the court held that the entire property received by the deceased at the partial partition passed on his death. The decision was based on the deceased being the sole coparcener with full ownership of the property obtained at partition, leading to the entirety of the property passing on his demise. The court made no order regarding costs for the reference.
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