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TMI Blog1973 (12) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... includible in the taxable estate of the deceased and that there was neither a gift nor disposition or transfer when the deceased got an unequal share than what he would have received as his rightful share when the family arrangement was effected on October 16, 1964? " The proceedings relate to the assessment to estate duty consequent on the death of Shantaram Shankar Kalghatgi, who passed away on 21st October, 1964. He was a karta of a Hindu undivided family and in that capacity was a partner in certain firms and the income therefrom was being assessed to income-tax in that status. By means of a family arrangement evidenced by a deed dated 16th October, 1964, he effected a partition of the interest of the Hindu undivided family in the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said amount. He relied upon the decision of the Andhra Pradesh High Court in Cherukuri Eswaramma (Smt.) v. Controller of Estate Duty [1968] 69 ITR 109 (AP). On appeal by the department to the Income-tax Appellate Tribunal, the view taken by the Appellate Controller of Estate Duty was upheld. The Tribunal held that there was neither a gift nor a disposition or transfer, when the deceased got an unequal share when the family arrangement was effected on 16th October, 1964, and there was no extinguishment of any right by him in favour of the members of the family. It referred to the ruling of the Andhra Pradesh High Court above mentioned and the ruling of the Gujarat High Court in Kantilal Trikamlal v. Controller of Estate Duty [1969] 74 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaration to become divided in status and concurrence of the other members of the family is not necessary. The share of the member gets crystallised on such declaration and communication to the other members. The actual division of the assets is only an adjustment of the antecedent right of the members. It is only a satisfaction of the rights rather than an extinguishment of any right of any member or conferring or transferring any right to any other member. The expression disposition involves an element of transfer of an interest in property from one person to another and such an element of transfer is absent in the conception of a partition in an undivided Hindu family. This was the view taken by Bhagwati C.J. in Kantilal Trikamlal v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations in Getti Chettiar's case [1971] 82 ITR 599 (SC) in construing the expression " disposition " in section 24 of the Estate Duty Act, the distinction sought to be made in the decision of the High Court of Madras does not appear to be justified. The High Court of Gujarat in the decision in Controller of Estate Duty v. Smt. Nirmala Chandulal [1977] 106 ITR 630 (Guj) after noticing the ruling of the Supreme Court in Getti Chettiar's case [1971] 82 ITR 599 (SC) adhered to its earlier enunciation in Kantilal's case [1969] 74 ITR 353 (Guj). In the light of the clear pronouncement of the Supreme Court in the above-said case, the contention for the department that in a partition there is a " disposition " cannot be accepted. Unless the transact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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