Law:

Section:

Section 40 of Estate Duty Act, 1953 - Estate duty - Property passing on death - From will of deceased 'P,' on his death his estate vested in his widow 'K' and six sons as tenants-in-common - Widow 'R' had right only to manage properties during her life time - Only restriction only cast on sons was that they would not have right to get their shares during life of 'K' or properties would not be alienated or encumbered during lives of sons - However, 'K' had no right to enjoy entire income of properties - Whether under will, entire estate did not pass to K on death of her husband 'P' and what passed to her sons on her death was only her seventh share - Held, yes - Whether, therefore, entire properties devolving under will of predeceased husband of deceased, would not be included in estate of deceased as property passing on her death under provisions of Act - Held, yes FACTS A person named 'P' died leaving his widow K, and six sons. P. left a will under which K obtained possession of the properties left by him, 'K' died and the revenue sought to assess the estate to estate duty under the Estate Duty Act. Before the Assistant Controller of Estate Duty the sons contended that the estate, of P. passed to them on his death in 1935 (before the Act), 'K' being only a trustee for them; and that, in the alternative, the estate passed to 'K' and the six sons in equal shares as tenants-in-common, so that on the death of the widow what passed was only her seventh share. Both these contentions were rejected; and on appeal to the Central Board of Revenue, the order was confirmed. Thereafter on the motion of the applicant the question extracted above has been referred to this court. HELD From the provisions of the will, it was clear that on the death of P. the estate vested in his widow and his six sons as tenants-in-common, and not in the widow alone exclusively. The right of the widow was only to manage the properties during her lifetime. She had full freedom of management; she would keep true accounts for all income and expenditure in continuation of the accounts the testator himself maintained. The only restriction cast on the sons was that they would not have the right to…

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