Estate Duty exemption for a Hindu undivided family house is limited to the deceased's share, not the whole property.

The exemption for a residential house of a Hindu undivided family under section 33(1)(n) of the Estate Duty Act, 1953 applies only to the deceased's share in the property. The provision was read with sections 34(1)(c) and 39(3), and the legal fiction in section 39(3) was confined to valuation rather than used to enlarge the exemption. Where the deceased held only an undivided interest in the joint family house, only that interest was treated as passing on death and only that share qualified for exemption, not the entire house.

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Issues: Whether the exemption under section 33(1)(n) of the Estate Duty Act, 1953, in respect of a residential house of a Hindu undivided family is available only to the extent of the deceased's share in the property.

Analysis: The exemption for a dwelling house was construed in the light of the scheme of the Act, particularly sections 33(1)(n), 34(1)(c) and 39(3). The legal fiction in section 39(3) was treated as confined to valuation and not extended so as to enlarge the scope of exemption. Where the deceased had only an undivided interest in the joint family house, only that interest could be treated as passing on death and only that interest could receive the exemption. The decision aligns with the view that the exemption is linked to the deceased's share and not to the entire joint family property.

Conclusion: The exemption under section 33(1)(n) is available only in respect of the deceased's share and not the entire joint family residential house.

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