Partition of Hindu family property is not a disposition for estate duty exemption under the Estate Duty Act.

A partition of Hindu family property was held not to amount to a "disposition" under section 24(1) of the Estate Duty Act, 1953, because it merely adjusts pre-existing rights and converts joint enjoyment into separate enjoyment without creating a new title or conveyance. The same meaning of "disposition" applied as in transfer provisions. As the widow's limited interest ceased on death, the property fell within section 7(1) and was not exempt under section 24(1), making it liable to estate duty.

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Issues: Whether the allotment of 25 acres of wet land under the partition deed amounted to a "disposition" within section 24(1) of the Estate Duty Act, 1953 so as to exempt the property from estate duty on the widow's death.

Analysis: The property in which the widow had a limited interest ceased on her death and, prima facie, fell within section 7(1) of the Estate Duty Act, 1953. The decisive question was whether the partition arrangement could be treated as a disposition. The allotment was held to be only an adjustment of pre-existing rights among members of the Hindu family and not a transfer in the strict sense. A partition merely transforms joint enjoyment into enjoyment in severalty and does not involve a conveyance or conferment of a new title. The same meaning of "disposition" as adopted in the context of transfer provisions was held applicable to section 24(1).

Conclusion: The arrangement under the partition deed was not a disposition within section 24(1) of the Estate Duty Act, 1953. The property was therefore not exempt under that provision and was liable to estate duty under section 7(1). The answer was against the assessee and in favour of the Revenue.

Ratio Decidendi: A partition of Hindu family property, being only an adjustment of antecedent rights and not a transfer or conveyance, is not a "disposition" for the purpose of section 24(1) of the Estate Duty Act, 1953.

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