K VENUGOPAL Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) The following question of law have been referred to this court under s. 64(1) of the E.D. Act (hereinafter called "the Act") by the Income-tax Appellate Tribunal, Hyderabad, at the instance of the applicant representing the estate of late K. C. Krishna Murthy :

(2.) The relevant facts as set out in the statement of the case by the Income-tax Appellate Tribunal are as follows : One K. G. Krishna Murthy, who was the karta of an HUF consisting of himself and his three sons, died on 23/10/1971.

(3.) The Asst. Controller of Estate Duty determined the total value of the Hindu joint family properties, of which the deceased was the karta, at Rs. 2,66,705 and determined the deceaseds 1/4th share at Rs. 66,676. The balance of Rs. 2,00,028 representing the value of the shares of the lineal descendants was aggregated under s. 34(1)(c) for rate purposes. The properties of the joint family, valued as above, included a residential house valued at Rs. 88,000. The said house is situate in Secunderabad, the population of which exceeds ten thousand. The accountable person contended that while determining the total value of the joint family properties the entire sum of Rs. 88,000 representing the value of the residential house was exempt under s. 33(1)(n) of the Act. It was further contended that for ascertaining the lineal descendants share for the purpose of aggregation, the entire value of the residential house should be exempted under s. 33(1)(n) of the Act. This contention was due only in respect of the value of 1/4th share of the deceased in the residential house, and accordingly exempted a sum of Rs. 22,000 representing the value of the deceaseds share in the residential house of the joint family, and declined to exempt the lineal descendants share in the residential house for the purpose of aggregation. On appeals preferred by the accountable person to the Appellate Controller and the Income-tax Appellate Tribunal, the view of the Asst. Controller was upheld.