1985 (7) TMI 28 - HC - Wealth-tax

Summary

Issues:
Whether the interest in the property was ancestral and constituted Hindu undivided family property in the hands of the appellant.

Analysis:
The case involved a question referred by the Income-tax Appellate Tribunal regarding the nature of the appellant's interest in a property claimed to be ancestral. The property in question was originally granted by Her Highness the Rajmata of Jodhpur to the ancestors of the assessee-respondent for the purpose of temple service. The Wealth-tax Officer initially did not accept the status of the assessee as the karta of a Hindu undivided family, arguing that the property was not ancestral but passed from Guru to Chela in an individual capacity. However, the Appellate Assistant Commissioner and subsequently the Tribunal disagreed with this assessment. They concluded that the property was indeed ancestral in the hands of the assessee-respondent, considering the terms of the grant and the lineage of inheritance outlined in the pedigree table. The Tribunal specifically noted that the interest derived by the appellant in the property was ancestral and constituted Hindu undivided family property, agreeing with the Appellate Assistant Commissioner's decision.

The court further analyzed the lineage and inheritance pattern in the pedigree table, highlighting that properties inherited by the assessee from his father were considered ancestral property in his hands. The birth of the assessee's son automatically converted the inherited property into Hindu undivided family property. The grants clearly indicated an unbroken lineage of inheritance from the original grantee to subsequent generations, emphasizing the ancestral nature of the properties. The court affirmed the Tribunal's decision, stating that the interest of the assessee in the properties was indeed ancestral and constituted Hindu undivided family property. The judgment favored the assessee and rejected the Revenue's appeal, emphasizing the ancestral nature of the properties in question.

In conclusion, the court upheld the Tribunal's decision, ruling in favor of the assessee and confirming that the interest in the property was ancestral and constituted Hindu undivided family property. The court directed that the Tribunal be informed of the decision in accordance with the relevant legal provisions.