HUF property deemed to pass on death is chargeable to estate duty where the deceased was the karta.

Property found to belong to a Hindu undivided family, where the deceased was the karta, was treated as property deemed to pass on death under section 7 of the Estate Duty Act, 1953. On that basis, the value of the two properties was chargeable to estate duty, and the contrary contention that such value could not be brought to estate duty was rejected.

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Issues: Whether the value of properties found to belong to the Hindu undivided family, of which the deceased was the karta, could be charged to estate duty on the deceased's death.

Analysis: The Tribunal's supplementary finding established that the properties in question belonged to the Hindu undivided family and that the deceased was its karta. On that finding, the properties were treated as property deemed to pass on the death of the deceased under section 7 of the Estate Duty Act, 1953. The contrary view that their value could not be brought to estate duty was, therefore, untenable.

Conclusion: The question was answered in the negative and against the accountable person, holding that the value of the two properties was chargeable to estate duty.

Final Conclusion: The reference was answered by holding that HUF properties deemed to pass on the deceased karta's death are liable to estate duty.

Ratio Decidendi: Where property is found to belong to a Hindu undivided family and, on the facts, is deemed to pass on the death of the deceased under the relevant estate duty provision, its value is chargeable to estate duty.

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