M. K. BALAKRISHNAN MENON vs ASSTT. CONTROLLER OF ESTATE DUTY-cum-I.T.O.ERNAKULAM

The Supreme Court held that under Section 7(3) of the Hindu Succession Act, 1956, the entire estate of a deceased sthanamdar passes to his successors upon death, and is liable for estate duty under the Estate Duty Act, 1953. The Court clarified that the legal fiction in Section 7(3) does not limit the property passing to a per capita share but is intended for distribution among family members. The appeal challenging the assessment order was dismissed, affirming that the whole sthanam property is subject to estate duty.