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Issues Involved:
1. Ownership of the property at the time of the deceased's death. 2. Application of the doctrine of "relation back" in adoption cases. 3. Impact of the Hindu Adoptions and Maintenance Act, 1956, on property rights. 4. Inclusion of property value in the deceased's estate under the Estate Duty Act. Detailed Analysis: 1. Ownership of the Property at the Time of the Deceased's Death: The primary issue was whether the property left by the deceased was to be treated as his absolute property or as belonging to the Hindu Undivided Family (HUF) consisting of the deceased, his widow, and the subsequently adopted son. The deceased died issueless, leaving his widow as the sole heir. The widow adopted a son after the death, and it was argued that the adoption should date back to the deceased's death, thus making the property part of the HUF. 2. Application of the Doctrine of "Relation Back" in Adoption Cases: The accountable person's counsel relied on two Supreme Court decisions (Sawan Ram vs. Kalawanti and Smt. Sitabai vs. Ramchandra) to argue that the doctrine of "relation back" applies to adoptions even after the Hindu Succession Act and Hindu Adoptions and Maintenance Act, 1956. This doctrine implies that the adopted son should be considered a member of the deceased's family at the time of his death, making the property a part of the HUF. However, the departmental representative argued that the property vested in persons before adoption cannot be divested, as supported by the Supreme Court decision in Punithavalli Ammal vs. Minor Ramalingam. 3. Impact of the Hindu Adoptions and Maintenance Act, 1956, on Property Rights: The departmental authorities and the Appellate Controller held that under Section 12 of the Hindu Adoptions and Maintenance Act, 1956, property vested in persons before adoption could not be divested. The accountable person's counsel admitted that the third Supreme Court decision (Punithavalli Ammal vs. Minor Ramalingam) was against their contention but argued that the earlier two decisions were not noted in the third decision, suggesting it need not be followed. 4. Inclusion of Property Value in the Deceased's Estate under the Estate Duty Act: The departmental representative argued that the deceased, being the sole surviving coparcener, was fully competent to dispose of the property at the time of his death, thus covered by Section 6 of the Estate Duty Act. The representative supported this with references to Mulla's Hindu Law and other legal texts, emphasizing that property vested before adoption cannot be divested. The accountable person's counsel reiterated the applicability of the doctrine of "relation back" and argued that the property should be treated as joint family property. Judgment Analysis: The Tribunal found that the facts were not in dispute. The deceased was the sole surviving coparcener at the time of his death, and the widow adopted a son after the death. The adoption deed did not indicate that the adoption was also to the late husband. The Tribunal acknowledged the doctrine of "relation back" but emphasized that the Supreme Court's decision in Punithavalli Ammal vs. Minor Ramalingam clearly stated that the full ownership conferred on a Hindu female under Section 14(1) of the Hindu Succession Act is not defeasible by adoption. The Tribunal agreed with the departmental representative that the deceased had full power of disposition over the property, and its value was includible in his estate under Section 6 of the Estate Duty Act. The Tribunal also noted that the decision of the Patna High Court, which seemed to favor the accountable person, could not be followed in preference to the Supreme Court's decision. Conclusion: The Tribunal held that the deceased had full power of disposition over the property, and its value was includible in his estate. The appeal was partly allowed, with a direction to the Appellate Controller to consider other grounds afresh according to law on merits, after allowing reasonable opportunity to the parties.
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