Law:

Section:

Section 6 of the Estate Duty Act, 1953 - Property within disposing capacity - 'K' along with his three sons originally constituted a Hindu undivided family - Later 'K' with consent of his sons and wife executed a release deed under which three sons after getting Rs. 10,000 each gave up their entire rights in said joint family and separated from family - Wife was also entitled to receive Rs. 10,000 like her sons and get separated from family but she choose to remain with 'K' - Thereafter 'K' was assessed in status of an individual under Indian Income-tax Act - This state of affairs continued till 'K' died - After death of K, in estate duty assessment, wife and sons of deceased claimed that at time of execution of release deed, which resulted in disruption of family, sons had received their shares in joint family property but remaining property was jointly owned by deceased and his wife and thus only half share in capital could be termed as constituting estate of deceased - This claim was rejected - Whether wife of 'K' was not a coparcener in HUF and thus could not claim partition and as such, share given to her on partition was in lieu of her maintenance Held, yes - Whether since wife of 'K' voluntarily gave up this right and instead remained joint with her husband, it could be said that 'K' became sole owner of entire property - Held, yes - Whether, therefore, entire property included in estate of deceased passed on his death as property which deceased at time of his death was competent to dispose of - Held, yes FACTS 'K' along with his three sons originally constituted a HUF. Till the assessment year 1945-46, this family was being assessed to income-tax as such and was carrying on the money-lending and cloth business. They possessed properties both movable and immovable. On 7-8-1944, K (the karta of this family), with the consent of his sons and wife, executed a release deed under which the three sons, after getting Rs. 10,000 each, gave up their entire rights in the said joint family property and separated from the family. On the basis of the release deed, it was claimed before the income-tax authorities under section 25A of the Indian Income-tax Act, 1922,…

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