Residential house exemption in Hindu undivided family property is confined to the deceased's share; the balance may be aggregated for rate purposes.

In a Hindu undivided family, exemption for a residential house under section 33(1)(n) of the Estate Duty Act, 1953 is confined to the deceased member's share that passes on death under sections 7 and 39. The exemption does not extend to the entire family house where it forms part of joint family property. For rate purposes, the interest of lineal descendants in joint family property is liable to aggregation under section 34, so the son's share may be included in computing the estate duty rate. The result is that only the deceased's notional share is protected, while the balance remains assessable for rate purposes.

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Issues: Whether the value of the residential house exclusively used by the deceased member of a Hindu undivided family was exempt from estate duty only to the extent of the deceased's share, and whether the remaining share was includible for rate purposes under the aggregation provisions.

Analysis: The exemption under section 33(1)(n) of the Estate Duty Act, 1953 applies only to property belonging to the deceased and passing on his death. Where the residential house forms part of Hindu undivided family property, only the deceased's notional share passes on death under section 7 read with section 39. The exemption therefore cannot extend to the entire house; it is confined to the deceased's share alone. For rate purposes, section 34 requires aggregation of the interest of the lineal descendants in joint family property, and the son's share was therefore liable to be taken into account under section 34(1)(c).

Conclusion: The entire residential house was not exempt, and only the deceased's half share was protected under section 33(1)(n); the remaining half share was validly included for rate purposes. The reference was answered against the assessee and in favour of the department.

Ratio Decidendi: In a Hindu undivided family, exemption of a residential house under section 33(1)(n) of the Estate Duty Act, 1953 is confined to the deceased's share passing on death, and the balance may be aggregated for rate purposes under section 34.

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