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Estate duty liability on compensation awarded under the Inams Abolition Act in respect of Yelandur jahgir. Analysis: The judgment pertains to estate duty proceedings following the death of an individual who was the descendant of Dewan Purnaiya, the original grantee of the jahgir of Yelandur. The deceased received compensation under the Inams Abolition Act, which was distributed among family members. The issue revolved around whether the entire compensation awarded to the deceased's branch should be considered as passing on the deceased's death for estate duty purposes. The Act governing the jahgir declared it as inalienable and impartible, with succession regulated by primogeniture. The department argued that the deceased, being the jahgirdar when the compensation was awarded, should be deemed to have absolute ownership over the entire amount. However, the court analyzed the terms of the grant and the Act, emphasizing that the jahgir was intended for the benefit of the descendants without restrictions on alienation or impartibility. The court observed that the Act aimed to preserve the estate for the family's benefit but did not alter its joint family property nature. Upon the jahgir's abolition and the Act's repeal, the original incidents of ordinary joint family property were reinstated. As the deceased received compensation post-repeal, it was determined that the compensation belonged to the joint family and had to be dealt with under the relevant provisions of the E.D. Act. The court held that the compensation received by the deceased was joint family property, answering the referred question in the affirmative against the department. In conclusion, the court ruled in favor of treating the compensation as joint family property, rejecting the department's argument for absolute ownership by the deceased. The judgment highlighted the importance of the terms of the grant and the Act in determining the nature of the property and its implications on estate duty liability.
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