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Issues:
1. Interpretation of the provisions of the Hindu Succession Act and the Estate Duty Act regarding the devolution of coparcenary interest in a Mitakshara Hindu joint family. 2. Determination of whether the interest of the lineal descendants of the deceased in the joint family property should be included for rate purposes under section 34(1)(c) of the Estate Duty Act. Analysis: The case involved the estate duty proceedings concerning the estate of a deceased coparcener in a Hindu undivided family (HUF). The primary issue was whether the value of the share of the lineal descendant of the deceased should be considered in the dutiable estate for rate purposes under the Estate Duty Act. The Tribunal, along with the Asst. Controller and the Appellate Controller, held that the interest of the lineal descendant in the joint family property was includible for rate purposes. The accountable person challenged this view, leading to the reference of two questions to the High Court. The accountable person's argument, presented by Mr. Patel, centered on the interpretation of the Hindu Succession Act, specifically Section 6, which deals with the devolution of coparcenary property. Mr. Patel contended that under the proviso to Section 6, the interest of the deceased in the coparcenary property devolves by testamentary or intestate succession and not by survivorship. He emphasized that the interest passing on the deceased's death was his defined share, not the coparcenary interest. However, the High Court disagreed, stating that what devolved under the proviso to Section 6 was indeed the coparcenary share of the deceased. Furthermore, the Court delved into the application of Section 34(1)(c) of the Estate Duty Act, which pertains to the aggregation of coparcenary interest and the interests of lineal descendants for estate duty calculation. The Court clarified that for this provision to apply, it is essential to establish that the property passing on death includes a coparcenary interest. In this case, as the coparcenary interest of the deceased passed on his death, the provisions of Section 34(1)(c) were deemed applicable. Therefore, the value of the share of the lineal descendant was held to be includible in the dutiable estate for rate purposes. In conclusion, the High Court answered the second question in the affirmative, supporting the Tribunal's decision to consider the interest of the lineal descendants of the deceased in the joint family property for rate purposes under Section 34(1)(c) of the Estate Duty Act. The Court found it unnecessary to answer the first question, given the resolution of the second issue. The reference was answered accordingly, with no order as to costs.
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