Law:

Section:

I Section 34, read with section 33 of the Estate Duty Act, 1953 - Aggregation of estate - Whether purpose and object of section 33(1)(n) and section 34(1)(c) are different and distinct and exemption under section 33(1)(n) has no relevance for purpose of section 34(1)(c) - Held, yes - Whether section 34(1)(c) does not speak of any exemption in respect of a residential house for purpose of working out value of interest of lineal descendants of deceased - Held, yes - Whether, therefore, Tribunal was justified in holding that while computing value of interest of lineal descendants of deceased in property of HUF which was to be included in dutiable estate for rate purposes under section 34(1)(c), value of house belonging to HUF which was used for residence, could not be excluded - Held, yes FACTS-I The deceased was a member of a HUF. The HUF owned a house which was used for residence by the members of the HUF. According to the accountable person as the value of the house used for residence was less than rupees one lakh, it was not includible estate under section 33(1)(n) and once the house was held to be exempt from inclusion in the dutiable estate, its value or part thereof could not be included in the dutiable estate for any purpose, not even while computing the value of the interest of the lineal descendant in the property of the HUF which was includible in the dutiable estate for rate purposes under section 34(1)(c). The Tribunal rejected the contention of the accountable person and held that while computing value of interest of lineal descendants of deceased in property of HUF which was to be included in dutiable estate for rate purposes under section 34(1)(c), value of house of HUF which was used for residence, could not be excluded. On reference : HELD-I Exemption under section 33(1)(n ) has no relevance for the purpose of section 34(1)(c). On a plain reading of section 34(1)(c) it is clear that the interest of all the lineal descendants of the deceased in the joint family property or HUF property has to be aggregated so as to form one estate and estate duty has to be levied thereon at the rate or rates applicable in respect of the principal value thereof.…

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