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Issues:
1. Inclusion of share of lineal descendants for rate purposes under section 34(1)(c) of the Estate Duty Act. 2. Exemption of full value of residential house belonging to Hindu Undivided Family under section 33(1)(n) of the Estate Duty Act. 3. Addition of interest on gifted amounts under section 34(4) of the Estate Duty Act. 4. Valuation of deceased's share in partnership firm for estate duty purposes. Analysis: Issue 1: The first question addressed the inclusion of the share of two lineal descendants for rate purposes under section 34(1)(c) of the Act. The court confirmed the finding of the Appellate Tribunal, citing that the constitutional validity of this provision could not be challenged by authorities under the Act. Various decisions were referenced to support the legality of this provision, ultimately ruling in favor of the revenue and against the accountable person. Issue 2: Regarding the exemption claim under section 33(1)(n) of the Act for the residential house owned by the Hindu Undivided Family, the court held that only the deceased's 1/4th share in the house qualified for exemption, not the entire value of the house. The court referred to relevant provisions and case law to support this decision, ultimately ruling in favor of the revenue. Issue 3: The third question pertained to the addition of interest accrued on gifted amounts by the deceased, within two years of his death, under section 34(4) of the Act. The court distinguished between income arising naturally and income resulting from investments made by the donee. Relying on case law interpretations, the court concluded that the interest amount could not be added to the estate passing on the deceased's death, ruling in favor of the accountable person. Issue 4: The final issue addressed the valuation of the deceased's share in a partnership firm for estate duty purposes. The court analyzed the nature of a partner's interest in partnership property, emphasizing that valuation should consider all assets and liabilities of the firm. By referring to relevant legal principles and case law, the court held that the Appellate Tribunal erred in valuing only one asset of the firm, the closing stock, and ruled in favor of the accountable person. In conclusion, the court provided detailed analyses and rulings on each issue raised, ensuring a comprehensive examination of the legal aspects involved in the estate duty matter.
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