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TMI Blog1973 (4) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... appears to us to be an erroneous one. A partition is not a transfer in a strict sense. It is an adjustment of the rights of the various members of the family. We see no reason why we should not place the same interpretation on the word " disposition " in section 24 of the Act. Appeal is allowed. The answer given by the High Court to the question referred to it is vacated and in its place we answer that question in the negative and in favour of the revenue. - - - - - Dated:- 4-4-1973 - Judge(s) : H. R. KHANNA., K. S. HEGDE JUDGMENT The judgment of the court was delivered by HEGDE J.----This is an appeal by certificate. It is directed against the decision of the Andhra Pradesh High Court in a reference under section 64(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to levy estate duty on the value of the property allotted to Kotamma under the partition deed dated June 16, 1943, under section 7 of the Act. The accountable persons contended that the estate in question is not liable to pay estate duty as it came within the scope of section 24 of the Act. The departmental authorities, including the Tribunal, rejected that contention. Thereafter, at the instance of the revenue, the question set out above was referred to the High Court. The High Court has answered that question in the affirmativeand in favour of the assessee. The revenue has come up in appeal to this court. The only question for consideration is whether the facts of the present case fall within the scope of section 24 of the Act. Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be deemed to pass by reason only of its reverter to the disponer in his lifetime. " The remaining portion of this section is also not necessary for our present purposes. It was urged on behalf of the revenue by Mr. Sharma, its learned counsel, that section 24 is wholly inapplicable to the facts of the present case. He contended that on the facts of this case there was no " disposition ". He further contended that, under the terms of the partition deed, the property did not revert wholly to the disponers. According to him it partly reverted to the disponers and partly to the widow of Chandrasekhara Rao, who cannot be considered as one of the disponers. Mr. Rama Rao, learned counsel for the assessee, on the other hand, con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ---appears to us to be an erroneous one. A partition is not a transfer in a strict sense. It is an adjustment of the rights of the various members of the family. In Commissioner of Income-tax v. Keshavlal Lallubhai Patel this court quoted with approval a passage from the decision of the Madras High Court in Gutta Radhakrishnayya v. Gutta Sarasamma. That passage reads thus : " Partition is really a process in and by which a joint enjoyment is transformed into an enjoyment in severalty. Each one of the sharers had an antecedent title and therefore, no conveyance is involved in the process as a conferment of a new title is not necessary. " This court had to consider the meaning of the word " disposition occurring in section 2(xxiv) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atute are not to be interpreted by having those words in one hand and the dictionary in the other. In spelling out the meaning of the words in a section, one must take into consideration the setting in which those terms are used and the purpose that they are intended to serve. If so understood, it is clear that the word 'disposition', in the context, means giving away or giving up by a person of something which was his own, 'conveyance' means transfer of ownership, 'assignment' means the transfer of the claim, right or property to another, 'settlement ' means settling the property, right or claim conveyance or disposition of property for the benefit of another,' delivery' contemplated therein is the delivery of one's property to another for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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