AIR 1976 SUPREME COURT 1935 ::1976 TAX. L. R. 831 ::1976 SCC (Tax) 90 ::1976 4 SCC 643 ::(1978) 4 SCC 643 ::1976 HinduLR 782 ::105 ITR 92 ::1976 2 ITJ 423 ::1977 (1) SCJ 1 ::1977 (1) SCR 9 ::1976 4 Taxation 163 ::(1976) 44 Taxation 163

Supreme Court Of India

(From: (1) (1969) 74 ITR 353 (Guj). (2) (1973) 88 ITR 96 (Mad))

Hon'ble Judge(s): H. R. Khanna, V. R. Krishna Iyer, P. K. Goswami , JJJ

Estate Duty Act (34 of 1953) , S.2(15) Expln.2, S.9(1), S.27— 'Property' - 'Disposition' - Hindu Joint family property - Partition by deceased within 2 years before his death - Deceased taking lesser share than his entitlement - Whether disposition in favour of relative - Difference between value of deceased's share and what he actually received - Whether a 'gift' - Difference in value whether chargeable to estate duty. (1969) 74 ITR 353 (Guj), Reversed. The deceased person, being a member of a joint Hindu family, within two years before his death, entered into a partition of family properties whereby he received towards his share an allotment substantially lower in value than would be his legal entitlement. Held that there was a disposition by the deceased of his interest in the family @page-SC1936 properties in favour of his relatives. It was by reason of Section 27 (1) liable to be treated as a gift under Section 9 (1). The difference between the value of the deceased's share and what was actually received by him was includible in the principal value of the estate of the deceased and was liable to be taxed as disposition of property under the Act. (Case law discussed). The definition of 'property' in Section 2 (15) has to inform and must be read along with Section 9 and Section 27 ....