Maintenance as consideration excludes gift treatment in a partial family partition under estate duty law.

A partial partition of selected family assets was examined under the Estate Duty Act, 1953 to determine whether the resulting amount could be treated as property deemed to pass on death. The memorandum showed only a limited division of movable assets, while the rest of the family property remained joint. The deceased agreed not to receive a share in the partitioned assets in return for her husband's continuing maintenance, and that maintenance right was treated as full consideration in money or money's worth. On that basis, the disposition was not treated as a gift, and a limited partial partition by itself was not regarded as attracting estate duty under section 9 read with section 27.

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Issues: Whether the amount of Rs. 22,630 arising from the partial partition of family assets could be brought to estate duty as property deemed to pass on death under section 9 read with section 27 of the Estate Duty Act, 1953.

Analysis: The memorandum showed only a partial partition of some movable assets, while the remaining family assets continued to remain joint and undivided. The deceased had signed the partition memorandum and had agreed not to receive any share in the partitioned assets in consideration of her husband continuing to provide for her maintenance. The right to maintenance was treated as sufficient consideration in money or money's worth for the disposition, and therefore the transaction did not answer the description of a gift. The reasoning also distinguished the authorities relied upon by the Revenue, as those cases involved complete partitions and not a limited partial partition of selected assets.

Conclusion: The addition of Rs. 22,630 could not be sustained under section 9 read with section 27 of the Estate Duty Act, 1953, and the issue was decided in favour of the assessee.

Final Conclusion: The alleged disposition was held to be supported by full consideration in money's worth and was not liable to be treated as a dutiable gift in the deceased's estate.

Ratio Decidendi: A disposition made in consideration of an enforceable right to maintenance is supported by full consideration in money's worth and is excluded from gift treatment under section 27(1)(a) of the Estate Duty Act, 1953; a limited partial partition of selected assets does not by itself attract estate duty under section 9.

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