Sathyaprema Manjunatha Gowda v. Controller of Estate Duty Karnataka (1997) 10 SCC 684

CASE_TITLE Sathyaprema Manjunatha Gowda v. Controller of Estate Duty Karnataka, (1997) 10 SCC 684

The Supreme Court held that Manjunatha Gowda’s property was taken on partition, not by survivorship. After partition, the share became his individual property. Therefore, the estate duty applied to the entire estate. The widow’s and unmarried daughter’s shares could not be excluded under Section 8(1)(d) of the Mysore Act, which works only when property passes by survivorship.

• Should the widow and unmarried daughter shares be excluded from estate duty?
• Was the property held by survivorship or received by partition?

The Supreme Court held that the property was received by partition. Section 8(1)(d) applies only when property devolves by survivorship, which was not the case. With no surviving coparcenary at death, the share remained individual property; thus, estate duty applied to the whole estate. Appeal dismissed, no costs.

Once a share is taken on partition, it is no longer joint family property. It is the holder’s individual estate. Exemptions tied to survivorship do not apply.

• Gives a clear tax test: ask if title came by partition or survivorship.
• Protects the revenue base where joint status is severed.
• Clarifies scope of Mysore Act s.8(1)(d) in HUF contexts.

1. Partition = separate estate → full estate duty.
2. Survivorship exemption needs a continuing coparcenary.
3. Check the mode of acquisition to apply the right section.
4. Widow/daughter exclusion fails if property is individual.

Mnemonic: “PART = PERSONAL” — Partition makes it personal (individual estate).

1. Trace Title: Partition or survivorship?
2. Pick Rule: Partition → no survivorship exemption.
3. Tax Result: Entire estate liable to duty.

Issue: Are widow and unmarried daughter’s shares excludable; was property held by survivorship or partition?

Rule: Mysore Act s.8(1)(d) applies only to survivorship. Partition severs joint status; share becomes individual.

Application: Decedent took 4/5 share by partition. No coparcenary at death; no survivorship.

Conclusion: Entire estate taxable; exclusions denied.

Coparcenary

A narrower unit within a HUF; only male line within three degrees from the holder (as historically stated in the case law context).

Survivorship

Right where the interest of a deceased coparcener passes to surviving coparceners as the body continues.

Partition

Separation of shares; property becomes the holder’s individual estate.