Estate duty exemption for residential house requires exclusive use by the deceased at death; permissive occupation is insufficient.

Section 9 of the Estate Duty Act deems certain gifted property to pass on death, but exemption under section 33(1)(n) applies only if the house belonged to the deceased and was exclusively used by him as a residence at the time of death. Earlier residential use before the gift is irrelevant. Where the gift was complete, possession had been delivered, no right of user was reserved, and the deceased remained only in permissive occupation, exclusive residential use as of right was not established. On those facts, the exemption was not available.

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Issues: Whether exemption under section 33(1)(n) of the Estate Duty Act, 1953 was available in respect of a house deemed to pass on death under section 9 where, after the gift, the deceased remained only in permissive occupation.

Analysis: Section 9 creates a statutory fiction by deeming certain gifted property to pass on the deceased's death, but the exemption under section 33(1)(n) is conditioned by the house or part thereof belonging to the deceased and being exclusively used by him for his residence at the time of death. Earlier residential use before the gift is immaterial. On the findings recorded, the property had been gifted, possession had been delivered, the deceased had no reserved right of user, and his continued stay was only by sufferance. Exclusive user as residence contemplates user as of right, not mere permissive occupation. In any event, the record did not establish exclusive use by the deceased at the relevant time.

Conclusion: The exemption under section 33(1)(n) was not available. The question was answered in the negative and against the accountable person.

Ratio Decidendi: For exemption under section 33(1)(n) of the Estate Duty Act, 1953, the house must be exclusively used by the deceased for his residence at the time of death, and mere permissive occupation or prior residential use does not satisfy the statutory condition.

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