Hindu widow's life interest enlarged into absolute estate under Section 14(1), making agricultural lands liable to wealth-tax.

A testamentary life interest granted to a Hindu widow was held to be referable to her pre-existing right to maintenance, so section 14(1) of the Hindu Succession Act enlarged that restricted interest into an absolute estate. Section 14(2) did not apply to prevent enlargement on these facts. The court also noted that the will made no provision for devolution of the remainder after the widow's death, supporting the view that the residue was undisposed of and the widow succeeded with full rights. As a result, the agricultural lands were liable to wealth-tax in the assessee's hands and the reference was answered in favour of the Revenue.

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Issues: Whether the value of the agricultural lands, and not merely the value of the widow's life interest, was liable to wealth-tax on the facts of the case.

Analysis: The question turned on the effect of the will and the operation of section 14 of the Hindu Succession Act. A restricted interest created by an instrument falls within section 14(2), but section 14(1) enlarges a female Hindu's interest where the property is held in recognition of a pre-existing right, including the widow's right to maintenance. On the will's terms, the widow was given enjoyment during her lifetime without any provision for devolution after her death. The life interest was therefore treated as arising in recognition of her pre-existing right, and, alternatively, the absence of any provision regarding the remainder left the residue undisposed of so that the widow succeeded with full rights.

Conclusion: The agricultural lands were liable to wealth-tax in the hands of the assessee, and the reference was answered against the assessee and in favour of the Revenue.

Ratio Decidendi: Where a testamentary life interest in favour of a Hindu widow is referable to her pre-existing right to maintenance, section 14(1) of the Hindu Succession Act enlarges it into an absolute estate and section 14(2) does not prevent such enlargement.

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