Estate duty rate aggregation applies to lineal descendants' coparcenary shares when determining the applicable rate on death.

For estate duty rate purposes under section 34(1)(c) of the Estate Duty Act, 1953, the interests of the deceased member's lineal descendants in joint family property are aggregated with the coparcenary interest passing on death. The earlier jurisdictional ruling upholding the validity and operation of that provision was binding, and the contrary Madras view had already been reversed by the Supreme Court. On that basis, the Tribunal erred in excluding the descendants' shares from aggregation. The share of the three lineal descendants was therefore rightly added to the deceased's share for determining the applicable rate of estate duty, and the issue was decided against the assessee and in favour of the Revenue.

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Issues: Whether, for the purpose of determining the rate of estate duty on coparcenary property passing on death, the share of the deceased's lineal descendants could be aggregated with the share of the deceased under section 34(1)(c) of the Estate Duty Act, 1953.

Analysis: Section 34(1)(c) provides for aggregation of the interests in the joint family property of all the lineal descendants of the deceased member with the coparcenary interest passing on death for the limited purpose of determining the applicable rate of estate duty. The earlier jurisdictional decision upholding the validity and operation of that provision was binding, and the contrary view of the Madras High Court had already been reversed by the Supreme Court. The Tribunal was therefore wrong in treating the share of the lineal descendants as excluded from aggregation for rate purposes.

Conclusion: The share of the three lineal descendants was rightly liable to be aggregated with the share of the deceased for rate purposes, and the question was answered against the assessee and in favour of the Revenue.

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