Regranted watan land retains joint family character where statutory abolition extinguishes impartible incidents and preserves pre-existing ownership.

A watan land regranted on payment of occupancy price lost its impartible character because the statute extinguished all watan incidents and regranted the land as occupant property. The court reasoned that, since the property was already joint family property before regrant, the statutory change did not make it the holder's separate estate; it continued as ordinary ryotwari property in the hands of the holder and his family. The deceased therefore had only a 1/7th share, and estate duty could attach only to that share. The issue was answered in favour of the assessee and against the department.

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Issues: Whether, on abolition of the watan and regrant of the watan land on payment of occupancy price, the property retained the character of separate impartible property or became joint family property, and consequently whether only the deceased's 1/7th share was liable to estate duty.

Analysis: The property was joint family property before regrant. On the combined effect of section 3(4), which extinguishes all incidents appertaining to the watan, and section 4(1), which provides for regrant to the holder as an occupant under the Code, the regranted land ceased to retain any impartible character and took the character of ordinary ryotwari property. In the hands of the holder and his family, it continued as joint family property.

Conclusion: The property did not become the deceased's separate property. It remained joint family property, and the deceased had only a 1/7th share; the question was answered in the affirmative and against the department.

Ratio Decidendi: Where watan property is abolished and regranted under the governing statute, the statutory extinguishment of watan incidents and regrant as occupant property remove the impartible character and preserve the pre-existing joint family character of the property.

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