Inheritance Law: Deceased's HUF Share Not Excluded from Total Wealth. Widow's Rights Upheld.

The Tribunal held that the deceased's share in a Hindu Undivided Family (HUF) should not be excluded from the total wealth of the HUF. The Tribunal ruled that the deceased's widow did not partition the share, and thus, the entire property remained with the joint family, including her fixed share. Consequently, the Tribunal allowed the revenue's appeals, overturning previous decisions in favor of the assessee.

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Issues:
- Whether the deceased's share in a Hindu Undivided Family (HUF) should be excluded from the total wealth of the HUF.

Analysis:
The case involved departmental appeals related to assessment years 1981-82 and 1982-83 concerning the exclusion of the deceased's share in a HUF from the total wealth. The assessee, a HUF, claimed deduction of the deceased's share for his widow and children. The Wealth-tax Officer disallowed the claim, but the Appellate Assistant Commissioner accepted it based on previous court decisions. The revenue appealed against this decision.

The main contention was whether the deceased's share should be excluded from the HUF's total wealth. The revenue argued that the deceased's wife, although entitled to a fixed share notionally, did not partition the deceased's share from the HUF, thus the share should not be excluded. The assessee's counsel relied on the Hindu Succession Act, stating that once the share is fixed, the deceased's share goes out of the family. The counsel also argued that there is no provision for partial partition in this case.

The Tribunal analyzed the proviso to section 6 of the Hindu Succession Act, which deals with a female inheriting an interest in joint family property. Referring to previous court decisions, the Tribunal highlighted that the female heir's interest gets fixed upon the death of a male member but does not automatically separate her from the family. The Tribunal concluded that in this case, the deceased's widow did not take any action to partition the share, and thus, the entire property remained with the joint family, including her fixed share. Therefore, the deceased's share could not be excluded from the HUF's total wealth.

In the final decision, the Tribunal allowed the revenue's appeals, stating that the deceased's share should not be excluded from the HUF's total wealth. The Tribunal implied that previous decisions supporting the assessee's case were overruled by the Supreme Court's decision in a similar matter.

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