Life interest in a residential house can qualify for estate duty exemption where the statute covers property interests.

For exemption under section 33(1)(n) of the Estate Duty Act, 1953, a house need not be held in absolute ownership if it was exclusively used by the deceased for residence and formed property belonging to the deceased on death. The court held that the phrase "belonging to" extends to an interest short of full ownership, because the Act's broad definition of "property" includes any interest in property. A life interest in the residential house therefore qualified as property for the exemption, and the answer was in favour of the accountable person.

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Issues: Whether a house occupied by the deceased as his residence, though held only as a life-tenant, qualified for exemption under section 33(1)(n) of the Estate Duty Act, 1953.

Analysis: The exemption in section 33(1)(n) applies to one house exclusively used by the deceased for residence and belonging to the deceased which passes on death. The expression "belonging to" is not confined to absolute ownership; it may extend to an interest less than full ownership. The Estate Duty Act defines "property" broadly to include any interest in property, and that definition governs the construction of section 33. A life interest in a house is itself an interest in property, and therefore property belonging to the deceased for the purpose of the exemption. The Court did not go into the separate question under section 7, as it was not referred.

Conclusion: The house in which the deceased resided as a life-tenant was entitled to exemption under section 33(1)(n), and the answer was in favour of the accountable person and against the revenue.

Ratio Decidendi: For the purpose of section 33(1)(n) of the Estate Duty Act, 1953, "belonging to the deceased" includes an interest in property short of absolute ownership, and the statutory definition of "property" as including any interest in property governs the exemption.

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