1993 (9) TMI 100

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..... f gift of the share of the assessee in the properties of the Hindu undivided family in the unequal distribution of assets in the partial partition effected on June 9, 1977, even though there was no specific clause in the deed of partial partition to the effect that the deficiency of the share of the deceased would be made up in subsequent partition? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that section 9(1) read with section 27(1) and section 2(15) and Explanation 2 thereof, of the Estate Duty Act are not applicable to the facts of the present case ?" The facts as found in the statement of case are as follows: The proceeding related to the estate duty assessment .....

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..... the other undivided properties, there could not be any gift of any share of the deceased in the properties of the Hindu undivided family. For these reasons, the addition of Rs. 1,21,666 was deleted by the Tribunal. The first appellate authority had affirmed the inclusion of the deemed gift on the ground that no distinction as such can be made between complete partition and a partial partition for the purpose of Explanation 2 to section 2(15) of the Act which reads thus : "The extinguishment at the expense of the deceased of a debt or other right shall be deemed to have been a disposition made by the deceased in favour of the person for whose benefit the debt or right was extinguished, and in relation to such a disposition the expression .....

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..... tever share is relinquished by virtue of the transaction which is held to come within the ambit of the term "disposition" irrespective of the fact whether the partition is partial or complete, in view of the fact that there has been a relinquishment of a right to a certain extent in so far as the specific property is concerned. Hence, in the facts and circumstances of the case, the Tribunal was not right in holding that since there was no complete distribution of the properties of the family, the lesser share received by the deceased in the unequal partition can be made up at future date when the remaining properties are further partitioned. In that view of the matter, it is not possible to uphold the order of the Appellate Tribunal. In t .....

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