Estate duty exemption overrides rate aggregation for exempt residential house included in coparcenary property.

Property specifically exempt from estate duty under section 33(1)(n) was considered outside the rateable aggregation under section 34. Reading the aggregation and exemption provisions together, the exclusion in section 34(1)(a) was treated as overriding the inclusionary effect of section 34(1)(c) for exempt property. Accordingly, a residential house that qualified for exemption could not be included in computing the lineal descendants' share for rate purposes merely because it formed part of coparcenary property, and the assessee succeeded.

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Issues: Whether the value of a residential house exempt under section 33(1)(n) could be included, for rate purposes, in computing the share of the lineal descendants of the deceased under section 34.

Analysis: The provisions governing aggregation and exemption were construed together. The exclusionary effect of section 34(1)(a) was treated as overriding the inclusionary operation of section 34(1)(c) in respect of property specifically exempt under section 33(1). On that basis, exempt property could not be brought into the rateable aggregate merely because it formed part of coparcenary property.

Conclusion: The residential house exempt under section 33(1)(n) could not be included in the lineal descendants' share for rate purposes, and the assessee succeeded.

Ratio Decidendi: Property specifically exempt from estate duty cannot be included in the aggregation for determining the rate, even if it forms part of coparcenary joint family property.

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