Estate duty on ancestral property: full power of disposition made the entire inherited property includible on death.

A male Hindu who inherited ancestral property and died without a son, son's son or son's son's son was treated as having full power of disposition over that property. On that basis, the property was regarded as capable of passing on death under section 6 of the Estate Duty Act, rather than being confined to a notional half share under the Hindu Succession Act. The entire inherited property was therefore includible in computing the principal value of the estate, and the notional partition argument was rejected on the facts stated.

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Issues: (i) Whether, on the death of a male Hindu who inherited ancestral property from his and had no son, son's son or son's son's son, the entire property or only one-half was includible in computing the principal value of the estate.

Analysis: The property inherited from the father was ancestral property in the deceased's hands. In the absence of a son, son's son or son's son's son, the deceased had full power of disposition over the property. Section 6 of the Estate Duty Act treats property which the deceased was competent to dispose of at the time of death as property passing on death. The concept of a notional partition under the Hindu Succession Act did not justify restricting the includible share to one-half in the facts of the case.

Conclusion: The entire property was includible in the principal value of the estate, and the answer was against the assessee and in favour of the Revenue.

Ratio Decidendi: Where a male Hindu inherits ancestral property and has no son, son's son or son's son's son, he has full power of disposal, and such property is deemed to pass on death under section 6 of the Estate Duty Act, 1953.

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