Coparcenary interest and estate duty: a female family member's share in HUF property was held outside charge.

A deceased female member's interest in Hindu undivided family property was held not chargeable to estate duty as a coparcenary interest. Section 7(1) of the Estate Duty Act applies to a coparcenary interest in joint family property, and section 39 likewise governs valuation of coparcenary property ceasing on death. Because the deceased was a female member and not a coparcener, her ascertainable share on partition could not be treated as coparcenary property for estate duty purposes. Reference to section 14 of the Hindu Succession Act did not change that position. The disputed share was therefore not includible in the estate duty computation.

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Issues: Whether the deceased female member's share in the Hindu undivided family property could be brought to estate duty as a coparcenary interest under section 7 of the Estate Duty Act and section 39 thereof.

Analysis: Section 7(1) of the Estate Duty Act specifically fastens charge on a coparcenary interest in joint family property. The deceased was a female member of the Hindu undivided family and was not a coparcener. Her interest in the family property, even if ascertainable on partition, could not be treated as a coparcenary interest. Section 39, which deals with valuation of interest in coparcenary property ceasing on death, likewise applies to coparceners and not to a female member. The reference to section 14 of the Hindu Succession Act did not alter the position for estate duty purposes.

Conclusion: The addition of the deceased's one-third interest in the Hindu undivided family property was not chargeable to estate duty; the issue was decided in favour of the assessee.

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