Family partition shortfall can form part of the estate duty base when the deceased receives less than his share.

An unequal family partition that leaves a quantifiable shortfall in the deceased's share can attract estate duty under the Estate Duty Act, 1953. Applying sections 9(1), 27 and the definition of "property" in section 2(15), the shortfall was treated as property passing or a taxable disposition to the extent of the benefit foregone by the deceased. The earlier view against inclusion was rejected, and the shortfall was held includible in the principal value of the estate, so the Revenue succeeded to that extent and the assessment was sustained only on the recomputed basis.

---

---

Issues: Whether the shortfall arising on a family partition between the deceased and his sons was liable to be included in the principal value of the estate under the Estate Duty Act.

Analysis: The partition of the movable and immovable family properties left a shortfall in the deceased's share. Applying the settled position under sections 9(1), 27 and the definition in section 2(15) of the Estate Duty Act, 1953, the unequal allotment was treated as attracting estate duty to the extent of the benefit foregone by the deceased. The prior view rejecting inclusion was not accepted, and the shortfall was held to be chargeable.

Conclusion: The amount representing the shortfall was includible in the principal value of the estate and the Revenue's claim succeeded to that extent.

Final Conclusion: The assessment was sustained only to the extent of the recomputed shortfall, and the appeal succeeded in part in favour of the Revenue.

Ratio Decidendi: In a family partition, an unequal allotment resulting in a quantifiable shortfall in the deceased's share can constitute property passing or a taxable disposition under the Estate Duty Act and be included in the principal value of the estate.

---