Law:

Section:

First Schedule of the Finance Act, 1955 - Rates of income-tax and super-tax - Whether lineal discent is possible from female members who may not be entitled to claim partition of joint family property - Held, yes - Whether 'descent' is lineal within meaning of condition (b) of clause (i) of proviso to Part I of First Schedule if property goes from mother to son, grandson and great grandson, because descent is in right line without any deviation - Held, yes Words and phrases: Words 'lineally descended' as occurring in proviso to Part I of the First Schedule to the Indian Finance Act, 1955 FACTS The assessee was a HUF governed by the Dayabhaga school of Hindu law. One 'G' died leaving a widow 'N', a son 'B' and a widow of a predeceased son called 'C' and a grandson 'S', who was son of 'C'. The assessee claimed before the ITO that it was entitled to a higher exemption limit under the First Schedule to section 2 of the Act. The ITO rejected the claim of the assessee holding that 'B' was lineally descended from 'N' and, 'S' was like was lineally descended from 'C', but a female member of the Hindu Family like 'N' or 'C' could not be a source of lineal descent within the meaning the first schedule. On appeal, the AAC upheld the order of the ITO. On further appeal, the Tribunal dismissed the appeal. On reference: HELD Under the Hindu law a female can form a line of descent with respect of her stridhan property. There was no reason why a son should not be "lineally descended" from his mother within the meaning of condition (b ) of clause (i) of the proviso to Part I of the First Schedule. This view was supported by the latter part of clause (b) wherein the words used are "lineally descended" from any other living member of the family not entitled to claim partition. The language of this clause clearly shows that lineal descent is possible from female members who may not be entitled to claim partition of joint family property. When the law speaks of "lineal descendant", the intention is that a person must be descended in a right line without any deviation as from father to son, grandson, great grandson. Similarly, the "descent" is lineal if the property goes from mother…

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