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Issues Involved:
1. Whether the Tribunal was justified in holding that the 1/2 share of the Hindu undivided family (HUF) property passed under the Estate Duty Act, 1953, on the death of the deceased. Issue-Wise Detailed Analysis: 1. Justification of the Tribunal's Decision: The primary issue revolves around whether the Tribunal was justified in law in holding that the 1/2 share of the HUF property passed under the Estate Duty Act, 1953, upon the death of the deceased, Smt. Kevalbai Tribhovandas Shah. Relevant Facts: - Smt. Kevalbai Tribhovandas Shah was the widow of Tribhovandas Chhaganlal Shah, who died in 1940. - Their only son, Dalsukhbhai, died in 1945, leaving behind a son, Ajitkumar, who also passed away in 1953. - At the time of Kevalbai's death in 1969, the HUF consisted of herself, her great-grandson Kiritkumar, and Kiritkumar's mother, Bhanumati. Legal Background: - Upon the death of Tribhovandas in 1940, his one-half undivided interest in the joint family property passed to his widow, Kevalbai, by way of widow's estate under Section 3(2) of the Hindu Women's Rights to Property Act, 1937. - This interest was limited but became absolute under Section 14 of the Hindu Succession Act, 1956. Arguments and Tribunal's Findings: - The accountable person argued that since there was only one coparcener in the HUF, there was no question of partition, and hence, the deceased was not entitled to any share in the HUF properties. - The Assistant Controller and subsequent appellate authorities rejected this contention, holding that the deceased's one-half share in the HUF property became her absolute property by virtue of Section 14 of the Hindu Succession Act, 1956, and thus passed on her death. Court's Analysis: - The court noted that Tribhovandas' one-half undivided interest vested in his widow, Kevalbai, as a limited owner in 1940. - Upon the enactment of the Hindu Succession Act, 1956, this limited interest matured into full ownership. - Consequently, at the time of her death, Kevalbai was the full owner of one-half undivided interest in the joint family property, which could be disposed of according to her will. Precedents: - The court referred to two previous judgments: Suketu Jayantilal Shah v. CED [1975] 100 ITR 439 (Guj) and Goswami Vrajraiji Ranchhodlalji Maharaj v. CED [1978] 112 ITR 851 (Guj), both of which supported the view that the widow's interest in the joint family property, which became absolute under Section 14 of the Hindu Succession Act, would pass on her death under the Estate Duty Act. Counter-Argument: - The accountable person cited CIT v. Shantikumar Jagabhai [1976] 105 ITR 795 (Guj), arguing that there cannot be partition between a Hindu woman and a sole surviving coparcener. - The court distinguished this case on the grounds that it involved an actual partition, whereas the present case involved a notional partition due to statutory provisions. Conclusion: - The court concluded that Smt. Kevalbai had a one-half undivided share in the joint family property at the time of her death, which was liable to pass under the appropriate provisions of the Estate Duty Act. - The question referred to the court was answered in the affirmative, against the accountable person and in favor of the revenue. Final Orders: - The accountable person was directed to pay the costs of the reference to the Controller. - A certificate for leave to appeal to the Supreme Court was granted, recognizing the substantial question of law involved. This comprehensive analysis covers the relevant facts, legal background, arguments, precedents, and the court's reasoning, maintaining the integrity of the original judgment's significant phrases and legal terminology.
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