1969 (4) TMI 2

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....sum of Rs. 5,000 received from his son, purported to relinquish his share valued at that amount in the joint family assets. The revenue applied Explanation to section 2(15) and added Rs. 1,71,986 being the net value of the deceased's half share as having passed on his death. The revenue at all stages declined to accept that section 9 had no application on the ground that the document aforesaid did not operate as a transfer. The reference to this court is of the question: " Whether, on the facts and in the circumstances of the case, the amount of Rs. 1,71,986 representing the value of the share of the deceased in the joint family property relinquished by him has been correctly included in the estate of the deceased as property deemed to p....

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....ind of a transfer, a term not defined in the Act, there would be no room for application of section 9. Cherukuri Eswaramma v. Controller of Estate Duty no doubt took that view. But, with due respect, prima facie we are not, without a further consideration, satisfied that the word "otherwise" should be limited in its scope in that way. The facts of this case, in our opinion, seem to square with the second Explanation to section 2(15). That, no doubt, is an Explanation to the inclusive definition of property. But the language of it seems to go further and coins a deemed disposition in the nature of a transfer. The mechanics of the transfer for purposes of Explanation 2 consist in the extinguishment at the expense of the deceased of a right....

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....f trust, settlement upon the person in succession, or otherwise. But the word "transfer" in section 9 cannot be understood in isolation and by confining one's attention only to that section. Its scope has got to be appreciated and delimited with reference to the other provisions of the Act, one of which is the second Explanation to section 2(15). When the Explanation speaks of a disposition of the kind it contemplates, it seems to us to be impossible to conceive that that kind of disposition would have been intended by the legislature to be excluded from the scope of section 9. We are of the view, therefore, that section 9 read with section 2(15), Explanation 2, has been rightly invoked by the revenue for the inclusion of the value of the h....