Unequal HUF partition does not by itself create estate duty liability absent real extinguishment of rights or benefit to another.

An unequal partition in a Hindu undivided family does not, by itself, amount to a disposition, gift, transfer, or extinguishment of rights for estate duty purposes. Partition merely converts joint enjoyment into enjoyment in severalty and adjusts antecedent coparcenary rights; a coparcener has no definite proprietary share before partition, and Explanation 2 to section 2(15) applies only where a real extinguishment of a right at the deceased's expense confers a benefit on another person. On that reasoning, the alleged deficiency was not includible in the taxable estate.

---

---

Issues: Whether an unequal partition of the interest of a Hindu undivided family amounted to a disposition or extinguishment of rights so as to attract Explanation 2 to section 2(15) of the Estate Duty Act, 1953 and section 9 thereof, making the amount of the alleged deficiency includible in the taxable estate.

Analysis: A partition in a Hindu undivided family does not involve a transfer or conveyance of property from one coparcener to another; it merely converts joint enjoyment into enjoyment in severalty and adjusts antecedent rights. A coparcener has no definite proprietary share until partition, and an unequal division does not by itself create a disposition, gift, or transfer. Explanation 2 to section 2(15) applies only where there is an extinguishment of a debt or other right at the expense of the deceased, conferring a benefit on another person. On a family partition, there is no extinguishment of such a right in the relevant sense, and the case is distinguishable from a mere relinquishment by a coparcener.

Conclusion: The unequal partition did not amount to a disposition or extinguishment attracting Explanation 2 to section 2(15), and the sum of Rs. 49,545 was not includible in the taxable estate.

Ratio Decidendi: A partition of a Hindu undivided family, even if unequal, is not a disposition or transfer and does not attract estate duty under the deeming provision unless there is a real extinguishment of a right at the expense of the deceased conferring a benefit on another.

---