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1979 (1) TMI 157

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..... ir, he having had no issues. The said family possessed large extent of agricultural lands in the villages of Koduvanguidi, Pillur, Panangathamkudi, Mudikondan and Nannilam in Tanjore District. On 21st Feb., 1949, an agreement was come to between Smt. Rajambal Ammal, on the one hand and Adi Narayanaswami Iyer, on the other by and under which the former was given agricultural lands of the extent of 8 velies in Kaduvangudi and Killumangudi villages, 3 velies in Mudikondan village and a house in the said village to be enjoyed by her for her life without powers of alienation. It was further agreed that Adi Narayanaswami Iyer should continue to be in possession of the said lands for three fasali years therefrom but deliver to Smt. Rajambal Ammal .....

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..... principal value of the estate as Rs. 2,51,716 including therein Rs. 2,29,011 being the value of the aforesaid lands. 5. On appeal, the Appellate Controller agreed with the Asst. Controller that the requirements of s. 24 of the ED Act had not been complied with and that consequently s. 7 of said Act applied and, therefore, the value of the lands had to be included. He also confirmed the valuation. 6. Thereupon, the accountable person preferred the above appeal to the Tribunal, contending (i) that the agreement dt. 21st Feb., 1949 was invalid being unregistered, that it could not be said to constitute a valid family arrangement, that no title in the lands in question passed to the deceased thereunder and that consequently the lands could .....

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..... belonged to only the HUF and since the deceased had no interest in them and became entitled to a right therein for her life under the agreement the remainder became vested only in the family and that there was no scope for application of the proviso to s. 24(1). 9. At the instance of the Department, a statement of the case was submitted to the High Court and following question was referred, namely:- "Whether Rs. 2,51,716 being the value of the lands enjoyed by the deceased for her life under the agreement dt. 21st Feb., 1949, is includible in the estate duty assessment ?" 10. The High Court has, by its Judgment dt. 20th Feb., 1978 in Tax case No. 38 of 1975 has, agreeing with the view taken by the Tribunal held that the document in q .....

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..... solutely to such half share and that the same passed on her death. He further contended that besides the deceased was entitled to be maintained in view of the fact that the family owned more of agricultural properties than non-agricultural properties and, therefore, the same should be deemed to have passed under s. 7, since on her death the interest ceased and the benefit accrued by such cesser. 12. The accountable person's learned counsel, on the other hand, contended that the deceased could not be said to have had any interest in the agricultural lands though she was in possession thereof. He pointed out that though she was entitled to maintenance, no charge had been created thereof on the agricultural lands and, therefore, she could no .....

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..... ment in question represented a family arrangement. 14. It is true that the deceased would have been entitled to be maintained despite the fact that she had become entitled to half share in the non agricultural properties of the family. But it cannot be said that she was entitled to any interest in the agricultural lands on that score. Such lands had not been made a charge for such maintenance. Unless a charge had been created it is difficult to say that the deceased had an interest in such lands. Not having had any such interest, the decision of Andhra Pradesh High Court in 43 ITR 51 (Estate Duty) supports the above view. Not having had any such interest, there is no question of s. 7 applying. It will be thus clear that the value of the a .....

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