Estate Duty Act-Admissibility of exemption u/s. 33(1)(n) of the Act in respect of the house owned by the firm in which deceased was a partner and house was being used by him for his residence - Income Tax - 330/1982

Estate Duty Act-Admissibility of exemption u/s. 33(1)(n) of the Act in respect of the house owned by the firm in which deceased was a partner and house was being used by him for his residence Circular No. 330 Dated 6/3/1982 To All Commissioners of Income-tax/ Controllers of Estate Duty. Sir, Subject: Estate Duty Act-Admissibility of exemption u/s. 33(1)(n) of the Act in respect of the house owned by the firm in which deceased was a partner and house was being used by him for his residence. The question as to whether exemption u/s. 33(1)(n) of the Estate Duty Act, 1953, is available in respect of a house owned by a firm in which the deceased was a partner (if the deceased was residing in the house at the time of his death) has been examined by the Board in consulation with the Ministry of law. 2. The Board are advise that a firm has no legal existence. The partnership property vests in all the partners and every partner has an interest in the property of the partnership. Since u/s. 33(1)(n) property belonging to the deceased will qualify for exemption and since the expression "belong" would include cases where an interest less than full ownership exists, exemption u/s. 33(1)(n) would be admissible in respect of a house belonging to the firm. 3. The contents of this circular may be brought to the notice of all the officers working in your charge. Yours faithfully, (Sd.) P.K. Chopra Under Secretary, Central Board of Direct Taxes.