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Issues:
1. Inclusion of the value of jewellery in the deceased's estate for computation. 2. Justification of including shares of lineal descendants in the estate for rate purposes under section 34(1)(c) of the Act. Analysis: Issue 1: Inclusion of jewellery value in the deceased's estate The deceased, Balwant Singh, passed away, and his estate included jewellery valued at Rs. 42,388. The question arose whether this value should be included in the computation of the deceased's estate. The court did not address this question during the hearing, so it did not survive for consideration. Issue 2: Inclusion of shares of lineal descendants in the estate The primary issue revolved around the inclusion of the interest of lineal descendants in the joint family property in the estate of the deceased for rate purposes. The Asst. Controller aggregated the value of the lineal descendants' interest with the deceased's estate. This aggregation was upheld on appeal by the Appellate Controller and the Appellate Tribunal. The accountable person relied on a Madras High Court decision, arguing that section 34(1)(c) was ultra vires. However, the Tribunal held that it was not competent to consider the vires of the provisions and that other High Courts had deemed the provision valid. The accountable person contended that the provisions of the Act did not cover the interest of lineal descendants in joint family property and that section 34(1)(c) could not override other relevant sections. However, the court found merit in the aggregation provision of section 34, which mandates the aggregation of coparcenary interests in joint family property for estate duty determination. Sections 34 and 35 of the Act, inserted in 1958, aim to address the disparity in estate duty incidence among different Hindu law schools. The court emphasized that section 34(1)(c) serves a specific purpose and does not expand the charging section's scope. The court referenced a local judgment that upheld the constitutionality of section 34(1)(c), emphasizing that the provision aims to achieve equality and prevent unequal distribution of wealth. Therefore, the court affirmed that the interest of lineal descendants in joint family property must be aggregated with the deceased's estate for estate duty calculation purposes. In conclusion, the court answered both questions in favor of the respondent, upholding the inclusion of lineal descendants' interests in the deceased's estate for rate purposes under section 34(1)(c) of the Act. The respondent was awarded costs amounting to Rs. 200.
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