Marriage expense deductions and notional partition allow full residential-house exemption for qualifying Hindu undivided family estate property.
Marriage expenses of unmarried daughters constitute a deductible liability from a deceased's estate where personal law makes ancestral or coparcenary property answerable for that obligation. The distinction between liabilities confined to separate property and those attaching to ancestral property determines deductibility under the Estate Duty Act, 1953. For a self-occupied residential house forming part of Hindu undivided family property, the statutory exemption may be determined through a notional partition immediately before death. Where family assets support allocation of the entire house to the deceased's notional share, the exemption need not be restricted to the actual fractional share adopted for valuation.
Issues: (i) Whether marriage expenses of three unmarried daughters could be deducted from the deceased's estate as a charge or deductible liability; (ii) Whether exemption for the residential house under section 33(1)(n) of the Estate Duty Act, 1953 had to be confined to the deceased's actual share in the Hindu undivided family property or could be allowed up to Rs. 1,00,000 on a notional partition basis.
Issue (i): Whether marriage expenses of three unmarried daughters could be deducted from the deceased's estate as a charge or deductible liability.
Analysis: The liability for an unmarried daughter's marriage expenses was treated as enforceable against ancestral or coparcenary property under personal law and, where the deceased died possessed of such property, as a deductible debt under the general charging and deduction scheme of the Estate Duty Act, 1953. The distinction between a personal obligation enforceable only against separately owned property and a liability attaching to ancestral property was material. The facts did not justify a remand for further inquiry after the long pendency of the reference and the repeal of the Estate Duty Act, 1953.
Conclusion: The deduction was allowable; the issue was decided in favour of the accountable person and against the Revenue.
Issue (ii): Whether exemption for the residential house under section 33(1)(n) of the Estate Duty Act, 1953 had to be confined to the deceased's actual share in the Hindu undivided family property or could be allowed up to Rs. 1,00,000 on a notional partition basis.
Analysis: On a harmonious construction of the exemption provision with the aggregation and valuation provisions, the residential house included in the estate of a Hindu undivided family could be viewed as having fallen to the deceased on a fictional partition immediately before death. On the facts, the family assets were sufficient to support the view that the entire self-occupied house could have gone to the deceased's share, so the statutory exemption was not restricted to the quantified one-fifth share adopted by the Revenue.
Conclusion: The full exemption of Rs. 1,00,000 was allowable; the issue was decided in favour of the accountable person and against the Revenue.
Final Conclusion: Both reference questions were answered against the Revenue, and the assessment position sustained by the appellate authorities was upheld without costs.
Ratio Decidendi: Where ancestral or coparcenary property is liable under personal law for unmarried daughters' marriage expenses, that liability is deductible under the general provisions of the Estate Duty Act, 1953; and for exemption of a self-occupied house included in HUF property, the statute permits a notional partition approach if the facts support the conclusion that the house could have fallen to the deceased's share.