TMI Blog1987 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ound in which the aforesaid question had been raised, we may give the family pedigree and interest in the joint family property of the lineal descendants of the deceased, Bhakt Sajjan Krishna, who died on August 3, 1979, as follows : Pedigree Table given below: Bhakt Sajjan Krishna Satya Mohan --Pushpa Shaeel Mohan --Uma Rani Dharam --Sushma Agrawal Agrawal Agrawal Mohan Agarwal Anupam (S) Priti (D) Rupam(S) Poonam(S) Pankaj(S) Piyus(S) Reetu(S) Gagan(S) Gaurav(S) Per Assistant Controller of Estate Duty Per accountable person -------------------------------------------------------------------------------------------------------------------------------------------------- Bhakt Sajjan 1/5 Bhakt Sajjan 1/5 *Krishna K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deceased. In second appeal, the Income-tax Appellate Tribunal took the same view holding that 27/60 and not 3/5ths was includible for rate purposes under section 34(1)(c) of the Act. It was thereafter on the reference application made by the Revenue that this case has come to this court. Section 34 lays down that for the purposes of determining the estate duty payable on the estate of the deceased, all the property passing or which is deemed to pass on the death of the deceased shall be aggregated so as to form one single estate and duty shall be payable at the proper graduated rate given in the First Schedule on the principal value determined in accordance with section 35 of the Act. The relevant clause of section 34(1), with which we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1), it is clear that the value of the benefit accruing or arising from the cesser of a coparcenary interest of a Hindu governed by the Mitakshara school for the purposes of taxation shall be of the principal value which would have been allotted to the deceased had there been a partition immediately before his death. Sub-section (3) provided that for the purpose of determining the principal value of the joint family property of a Hindu family governed by the Mitakshara law in order to arrive at the share which would have been allotted to the deceased bad a partition taken Place immediately before his death, the provisions of the Act, so far as may be, shall apply as they would have applied if the joint family property had belonged to the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r's counsel was that not only shall a partition be deemed to have taken place between the deceased, Bhakt Sajjan, and his sons, in which each one of them excluding his widow would get 3/5ths being 1/5th to each of them but also the shares of the grandsons had to be worked out and if those shares were worked out, the interest in the joint family property of all the lineal descendants would be 27/60. In that situation, the rate applicable for payment of estate duty under section 35 would be less than what it would be in case 3/5ths is found to be the share of the lineal descendants liable to be aggregated. For the proposition, the petitioner placed reliance on a judgment of the Division Bench in Satyanarayan Saraf v Assistant Controller [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r our purposes are : 1. to remove disparity in the incidence of estate duty on the estates of persons belonging to those governed by the Mitakshara, on the one hand and those governed by Dayabhaga, which does not recognise acquisition of interest by birth, on the other, and 2. to remove unequal distribution of wealth. It may be noted here that section 34(1)(c) does not levy any duty on the estate of the deceased. It enables aggregation of the interest of the male lineal descendants for the purposes of determining the rate at which estate duty is leviable on the principal value of the interest of the deceased. No estate duty is leviable on the interest of the male lineal descendants. It only provides the machinery for determining the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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