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TMI Blog1971 (4) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... only one-third right in the tarwad property, and that he was not liable to estate duty as the principal value of the said one-third right was below the taxable limit of Rs. 50,000. The respondent, by his order, exhibit P-1, dated March 31, 1969, rejected the above contention, and assessed the petitioner to pay a duty of Rs. 711.27 including interest payable under section 53 of the Act. Accordingly, he issued a notice of demand, exhibit P-2, dated March 31, 1969, to the petitioner calling upon him to pay the above amount. In making the above assessment he fixed the value of the whole property belonging to the tarwad of the deceased at Rs. 1,05,012 and the value of the one-third share which the deceased would have got on a partition at Rs. 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty, the estate duty leviable on the property not so exempt shall be an amount bearing to the total amount of duty which would have been payable on the whole estate, had no part of it been so exempt, the same proportion as the value of the property not so exempt bears to the value of the whole estate. Explanation.-For the purpose of this sub-section, ' property exempt from estate duty ' means- (i) any property which is exempt from estate duty under section 33 ; (ii) any agricultural land situate in any State not specified in the First Schedule ; (iii) the interests of all coparceners other than the deceased in the joint family property of a Hindu family governed by the Mitakshara, Marumakkathayam or Aliyasantana law. (3) Notwithstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention was not also seriously put forward by counsel. What was seriously urged was that the said provision is violative of article 14 of the Constitution, as it treats persons or groups of persons differently situated in the same manner, with the result that it affects some of them in a most irrational way. The argument was illustrated by counsel thus. In the case of a Marumakkathayam tarwad consisting of three sisters, A, B and C, A having 10 children, B having two and C having no children, each member of the tarwad would have on partition 1 /15 share in the tarwad property ; and if A dies, her estate would be assessed to duty at the rate applicable to the principal value of 11/15 of the tarwad property ; whereas if C dies, her estate wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uality before law and equal protection of the laws enshrined in article 14 of the Constitution. If a taxation law is based on a general classification it cannot be attacked on the ground that it would affect discriminately on some persons or group of persons who would fall into a class on a further sub-classification, on account of certain special features attached to them. The principle underlying the provision for aggregation contained in sub- section (1)(c) of section 34 is that the rate of duty payable on the property passing on the death of a Hindu whether governed by the Mitakshara, Marumakkathayam or Aliyasanthana law, is fixed on a common basis, namely, the interest in the joint property of all lineal descendants of the deceased mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one of the three systems of law expressly mentioned therein. Therefore, in the context these words appear, they can mean only " joint interest " or " undivided interest ". The use of the word " coparcenary " is inappropriate and confusing. All the same, the object of the provision is clear ; and the words " coparcenary interest " should be so interpreted as to give effect to the legislative object of the provision, and a sensible meaning to it. It is necessary to refer to some of the provisions of the Act, in order to appreciate the arguments of the petitioner's counsel on the third point. The charging provision is contained in section 5(1) of the Act, which reads : " 5. Levy of estate duty.- (1) In the case of every person dying after th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of an estate which consists wholly of agricultural land, a sum representing one-fourth of the estate duty payable ; and (b) in the case of an estate which consists in part only of agricultural land, a sum representing one-fourth of the estate duty payable on that part of the estate which consists of agricultural land, the duty on such part being a sum which bears to the total amount of estate duty the same proportion as the value of the agricultural land bears to the value of the estate. " The Second Schedule is as follows : " THE SECOND SCHEDULE (See sections 5, 20-A and 35) Rates of Estate Duty PART I. In the case of any property which passes or is deemed to pass on the death of the deceased- Rate of duty (1) On the fir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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