Law:

Section:

Section 34 of the Estate Duty Act, 1953 - Aggregation -Petitioner and his father constituted HUF governed by Mitakshara law - On death of father, Assistant Controller assessed principal value of share of father in HUF and half of said value was taken as interest of petitioner's father at time of his death which was deemed to have passed on to petitioner - Petitioner by filing instant writ petition challenged validity of section 34(1)(c) contending that it was beyond competence of Parliament inasmuch as estate duty was levied on whole estate which formed part of joint family and in which both deceased and petitioner had interest as co-parceners - He further contended that section 34(1)(c) was violative of article 14 of Constitution - Whether from conjoint reading of sub-sections (1) and (2) of section 34, it can be said that principle of aggregation is applied only for purpose of determining rate and not levying duty on principal value of interest passed on to petitioner after death of his father in so far as it belonged to deceased - Held, yes - Whether in that regard Parliament is competent to not only prescribe rule as to how principal value is to be determined but is also competent to evolve a formula by which rate at which aggregate principal value can be charged and then is equally competent to levy estate duty on property or interest deemed to have been passed after death of father to son - Held, yes - Whether, section 34(1)(c) is not in any manner discriminatory between Mitakshara father as against brother or his sons, and between same class there being no discriminatory treatment, article 14 cannot be said to have been attracted - Held, yes - Whether, in view of aforesaid, it can be calculated that provisions of section 34(1)(c) are not unconstitutional - Held, yes FACTS The petitioner and his father constituted a HUF governed by the Maitakshara law. The family had extensive properties consisting of agricultural land, residential house etc. On the death of the father, his estate, which was deemed to have passed on to Assistant Controller assessed the principal value of the share of the father in the HUF and half of the said value was taken as the…

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