Law:

Section:

Section 33 of the Estate Duty Act, 1953 - Exemption -Deceased, an undivided member of Hindu joint family, had share in family properties including one residential house where deceased lived and died - Whether entire value of exempted house must be deducted from principal value of all properties of joint family and from net principal value of properties of joint family, share of deceased must be worked out - Held, yes FACTS The deceased was an undivided member of HUF and had half share in family properties including one residential house where he lived and died. On the death of the deceased the value of the residential house was estimated at Rs. 20,000. The Assistant Controller held that exemption under section 33(1)(n) would be worked out only in respect of dutiable share of deceased and not in ascertaining the lineal descendants' share. On appeal, the Tribunal held that the exemption provision in section 33(1)(n) should be allowed in respect of the dwelling house of the HUF from the value of the joint family properties before determining the share of the deceased and also that of the lineal descendants, the former for assessment and the latter for aggregation. On reference : HELD The question of exemption is necessarily and inextricably mixed up with the computation of the total value of the property. In a case where the exemption under the Act does not cover the entire value of the property, but only a part of it, or subject to a ceiling or upper limit, the position is clear still, since what is exempt is not the property as a whole item, but only part of its value. This necessarily involves the process of evaluation and computation, not merely for liability, but also for exemption. The Assistant Controller computed the principal value of all the properties of the joint family and after allowing for the estimated liabilities of the family, he derived the net principal value of the joint family estate. From that computation, he deducted one-half of the value of the dwelling house. These steps in the computation showed that there never was any idea in the mind of the Department or its Assessing Officer that section 39(3) could not permit taking note of the…

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