C.S.P. Singh, J.

1. THIS is a composite reference at the instance of the assessee as well as the department, and the questions referred are :

" 1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the value of the share of the lineal descendant of the deceased in the joint family property was includible under Section 4(1)(c) for rate purposes ?

2. Whether the Tribunal was correct in law in holding that the estate duty chargeable under Section 5 of the Estate Duty Act was not deductible for computing the principal value of the property passing on the death of the deceased ? "

2. MAHARAJA Pateshwari Prasad Singh died on 30th June, 1964, leaving behind his widow, Maharani Raj Laxmi Devi, the accountable person, and an adopted son as his legal heirs. The MAHARAJA was the karta of the joint Hindu family which owned a number of properties including Neel Bagh Palace at the time of his death. In the present reference we are concerned with the inclusion of 1/3 share of the son in the joint family property under Section 34(1)(c) of the E.D. Act, the claim for deduction of estate duty from the principal value of the estate of the decease