1981 (7) TMI 54 - HC - Income Tax

Summary

The High Court of Madras held that under the Annuity Deposit Scheme, repayments of the annuity deposit are deemed as income of the depositor and taxable. The court ruled that a refund of the principal under the scheme is taxable only in the hands of the depositor, not in the hands of any other person. The court agreed with the Tribunal's decision that a refund of the annuity deposit can be deemed income only if paid to the depositor. The court held that in this case, the refund made to the heir of the deceased depositor cannot be taxed as income. The Tribunal's decision was upheld, and the share of annuity deposit received by the assessee was not assessable for the assessment year 1971-72.