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of <h1>Court allows deduction for daughter's marriage expenses before determining deceased's share in joint family property for estate duty liability.</h1> <h3>Controller Of Estate Duty Versus S. Vijayendra Reddy</h3> Controller Of Estate Duty Versus S. Vijayendra Reddy - [1998] 232 ITR 432 Issues:1. Deduction of marriage expenses of unmarried daughter in computing total wealth of family for notional partition of joint family assets.Analysis:The case involved a dispute regarding the deduction of marriage expenses of an unmarried daughter in computing the total wealth of a joint family for notional partition of assets. The deceased, his wife, three sons, and daughter were part of the family. The deceased's share in the joint family property was 1/4th. The Appellate Controller of Estate Duty initially rejected the claim to deduct marriage expenses, but the Tribunal allowed it based on a previous court decision. The Tribunal calculated the marriage expenses at Rs. 75,000 and deducted it before determining the deceased's share in the joint family property.The main issue was whether the Tribunal was correct in deducting Rs. 75,000 for the marriage expenses of the unmarried daughter before determining the deceased's share in the joint family property for estate duty liability. Section 6 of the Estate Duty Act states that property the deceased could dispose of at the time of death is deemed to pass on death. The deceased's disposing capacity is limited to his share in the joint family property. Therefore, before calculating estate duty liability, the deceased's share in the joint family property must be determined through notional partition.As per Hindu law principles, expenses for the marriages of unmarried daughters must be set apart before arriving at the deceased coparcener's share in the joint family property through notional partition. The Tribunal's decision to deduct Rs. 75,000 for the daughter's marriage expenses was in line with these principles. The Tribunal's approach was deemed appropriate and in accordance with Hindu law guidelines. Therefore, the court found no fault in the Tribunal's order and upheld the deduction of marriage expenses before determining the deceased's share in the joint family property.In conclusion, the court ruled in favor of allowing the deduction of Rs. 75,000 for the marriage expenses of the unmarried daughter before computing the deceased's share in the joint family property for estate duty purposes. The decision was based on established Hindu law principles and the deceased's limited disposing capacity in the joint family property.
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