Estate duty on Hindu widow's joint family share upheld where notional partition value determined inclusion in the estate.

A Hindu widow's one-fourth share in joint family property, acquired under the Hindu Women's Rights to Property Act, 1937, was treated as carrying the incidents of a coparcenary interest, including the right to partition and a fluctuating share, even though she was not a coparcener in the strict sense. On her death without partition, that interest ceased and merged in the coparcenary property, so it fell within the inclusive part of section 7(1) of the Estate Duty Act, 1953. The value was to be computed under section 39 by reference to the share payable on a notional partition immediately before death. The share was therefore includible in the estate and subject to estate duty.

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Issues: Whether the one-fourth share of a Hindu widow in joint family property, acquired under the Hindu Women's Rights to Property Act, 1937, was includible in her estate as property deemed to pass on death under section 7 of the Estate Duty Act, 1953, and, if so, whether it was capable of valuation under section 39 of that Act.

Analysis: The widow was held to have been introduced into the Mitakshara coparcenary by statutory substitution under section 3(2) of the Hindu Women's Rights to Property Act, 1937, with the same interest as her husband, subject to the limited estate under section 3(3). Although she did not become a coparcener in the strict sense, she acquired the incidents of a coparcenary interest, including the right to demand partition, community of interest and possession, and a fluctuating interest liable to increase or decrease with changes in the family. On her death without partition, that interest ceased and merged in the coparcenary property, attracting the inclusive part of section 7(1) of the Estate Duty Act, 1953. As she was a member of the coparcenary for the purpose of section 7(2), the value of the benefit was to be computed under section 39 by reference to the share that would have been allotted on a notional partition immediately before death.

Conclusion: The share was exigible to estate duty and was correctly includible in the estate; the reference was answered in favour of the Revenue.

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