Notional partition for estate duty must account for daughter's maintenance and marriage expenses, while minor valuation differences need not disturb adoption.

For estate-duty valuation of a coparcenary interest, the notional partition immediately before death must reflect all legitimate charges on the joint family property, including the maintenance and marriage expenses of an unmarried daughter; that deduction was allowed. The challenge to the departmental valuation of the deceased's one-third HUF share failed because the difference from the disclosed value was small and there was no material error in principle, so the adopted valuation was upheld.

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Issues: (i) Whether the department was justified in refusing to interfere with the valuation adopted for the deceased's one-third share in the HUF property; (ii) Whether the amount claimed towards the marriage and maintenance expenses of the unmarried daughter was deductible in computing the estate liable to duty.

Issue (i): Whether the department was justified in refusing to interfere with the valuation adopted for the deceased's one-third share in the HUF property.

Analysis: The difference between the disclosed value and the departmental estimate was small, and valuation necessarily involved approximation. In the absence of any wide variation or error in principle, interference was not warranted.

Conclusion: The valuation adopted by the department was upheld and the assessee failed on this issue.

Issue (ii): Whether the amount claimed towards the marriage and maintenance expenses of the unmarried daughter was deductible in computing the estate liable to duty.

Analysis: In computing the principal value of a coparcenary interest under the statutory deeming provisions, a notional partition immediately before death has to be assumed, and the value of the deceased's share must be worked out by applying the legal consequences of such partition. Under Hindu law, the property available for partition is ascertained only after providing for liabilities and legitimate claims against the joint family property, including the maintenance and marriage expenses of an unmarried daughter. The daughter's right to a share on the opening of succession does not negate the pre-death obligation to provide for her maintenance and marriage expenses when the deemed partition is worked out. The claim was therefore a legitimate charge on the joint family property.

Conclusion: The deduction claimed on account of the unmarried daughter's marriage and maintenance expenses was allowed in favour of the assessee.

Final Conclusion: The appeal succeeded only to the extent of allowing the deduction for the unmarried daughter's marriage and maintenance expenses, while the valuation challenge was rejected, resulting in a partial grant of relief.

Ratio Decidendi: For computing the value of a coparcenary interest under the estate-duty deeming provision, the notional partition must be worked out by giving effect to all legitimate charges on the joint family property, including the maintenance and marriage expenses of an unmarried daughter.

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