1976 (4) TMI 10 - HC - Income Tax

Summary

Issues Involved:
1. Determination of the deceased widow's share in the Hindu undivided family's property.
2. Applicability of the Hindu Women's Rights to Property Act, 1937, and the Hindu Succession Act, 1956.
3. Inclusion of the widow's share in the estate for the purposes of estate duty.
4. Rights of other family members, specifically the mother-in-law, in the joint family property.

Issue-wise Detailed Analysis:

1. Determination of the Deceased Widow's Share in the Hindu Undivided Family's Property:
The primary question was whether the deceased widow was the absolute owner of one-half of the Hindu undivided family's property and whether this share passed on her demise. The Tribunal held that the widow had a one-half share in the joint family properties. The court needed to ascertain her share by considering the provisions of the Hindu Women's Rights to Property Act, 1937, and the Hindu Succession Act, 1956.

2. Applicability of the Hindu Women's Rights to Property Act, 1937, and the Hindu Succession Act, 1956:
Under Section 3(2) of the 1937 Act, the widow had the same interest in the property as her deceased husband, albeit as a limited interest known as a Hindu woman's estate. Section 14 of the Hindu Succession Act, 1956, converted this limited interest into full ownership. The Supreme Court in Kotturuswami v. Veeravva interpreted "possessed" broadly, meaning the widow's interest became absolute upon the enactment of the Hindu Succession Act.

3. Inclusion of the Widow's Share in the Estate for the Purposes of Estate Duty:
The court referenced the case Suketu Jayantilal Shah v. Controller of Estate Duty, which held that the widow's interest, upon becoming absolute, would pass on her death and be included in the estate for estate duty purposes under sections 5 or 6 of the Estate Duty Act. Consequently, the widow's one-half share in the joint family property was liable to be included in her estate for estate duty.

4. Rights of Other Family Members, Specifically the Mother-in-Law, in the Joint Family Property:
The court examined whether Tati, the mother-in-law, was entitled to any share. It was concluded that Tati, being the mother of Ranchhodlalji, would not be entitled to a share in the joint family property upon partition between Ranchhodlalji and his son, Vrajraiji, as she was not a "sonless widow" as per Vyasa's text. Tati was only entitled to maintenance, not a share in the property. This was supported by precedents such as Sheo Narain v. Janki Prasad and Jamnabai v. Vasudeo Sagarmal.

Conclusion:
The court concluded that Vraj Priya, the deceased widow, was the absolute owner of one-half of the Hindu undivided family's property, and this share passed on her demise. Consequently, this one-half share was liable to be included in her estate for estate duty purposes. The Tribunal's provision for Tati's maintenance was deemed reasonable. The question referred was answered in the affirmative, favoring the revenue and against the accountable person. The court granted a certificate for leave to appeal to the Supreme Court, recognizing the substantial question of law involved.