Lineal descent through female members bars higher exemption limit under the Finance Act proviso.

The proviso to the First Schedule to section 2 of the Indian Finance Act, 1955 was construed to require that the minimum number of HUF members entitled to the higher exemption limit must not be lineally descended from one another. The expression "lineally descended" was given its ordinary meaning of descent in a direct line, and it was held that such descent can exist through female as well as male members. Because the relevant members were lineally descended from each other, the assessee HUF failed the proviso and was not entitled to the higher exemption limit.

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Issues: Whether the assessee Hindu undivided family was entitled to the higher exemption limit under the proviso to the First Schedule to section 2 of the Indian Finance Act, 1955.

Analysis: The family had four members entitled to claim partition, all over eighteen years of age, but the proviso further required that none of the minimum number of members should be lineally descended from another member. The expression "lineally descended" was construed in its ordinary sense as descent in a right line, and it was held that such descent may exist through a female member as well as through a male member. A son or grandson is lineally descended from his mother or grandmother for the purpose of the proviso. On that construction, Byomkesh was lineally descended from Nidhubala and Samarendra from Gouribala, so the condition in the proviso was not satisfied.

Conclusion: The assessee was not entitled to the higher exemption limit.

Final Conclusion: The reference was answered against the assessee, and the Revenue's interpretation of the proviso was upheld.

Ratio Decidendi: For the purpose of the exemption proviso in the Finance Act, lineal descent includes descent through female members, and the benefit is unavailable where the required members are lineally descended from one another.

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