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Issues: Whether, on the death of a coparcener leaving behind a female heir covered by the proviso to section 6 of the Hindu Succession Act, the share that devolves on the heirs can still be included in the net wealth of the Hindu undivided family for wealth-tax purposes.
Analysis: Section 6 of the Hindu Succession Act creates only a notional partition for the limited purpose of ascertaining the deceased coparcener's share. The fiction does not disrupt the Hindu undivided family as a taxable entity, but it does crystallise the deceased's share and carry it out of the family by devolution on the heirs. Section 20 of the Wealth-tax Act, 1957 is a machinery provision dealing with recognition of partition for assessment purposes; it does not authorise inclusion in the family's net wealth of property that no longer belongs to the family. The charge under section 3 and the definition of net wealth under section 2(m) proceed on assets belonging to the assessee, and the deceased's devolved share cannot be treated as belonging to the Hindu undivided family.
Conclusion: The devolved share of the deceased coparcener is not includible in the net wealth of the Hindu undivided family; the question was answered in the affirmative and against the Revenue.
Ratio Decidendi: The fiction of notional partition under section 6 of the Hindu Succession Act is confined to determining the deceased coparcener's share and cannot be extended to include that share in the assets of the Hindu undivided family for wealth-tax assessment.
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