1986 (2) TMI 46 - HC - Income Tax

Summary

Issues:
1. Determination of whether the property "Sita Ram Sadan" at Boring Road is part of the estate of the deceased as his individual income or joint property of the Hindu undivided family.

Analysis:
The judgment pertains to a reference under section 64(2) of the Estate Duty Act, 1953, where the main issue was whether the property in question belonged to the deceased as his individual property or was part of the Hindu undivided family's assets. The deceased, Kedarnath Singh, passed away leaving behind assets, including a house known as "Sita Ram Sadan." The Revenue contended that the house was the deceased's individual property, passing to his son, while the assessee argued it was joint family property. The deceased had personal income and another house treated as joint family property, but consistently declared Sita Ram Sadan as his individual property in income tax returns.

The contention of the assessee was that if there was a sufficient nucleus for acquisition and the property was joint family property, it should not be included in the deceased's estate. However, the court found that the circumstances indicated the property was the deceased's individual asset. Despite the lack of evidence on the surplus for the house's acquisition, the court concluded that the property was not shown to be part of the Hindu undivided family's assets. The court emphasized the deceased's consistent declaration of the property as individual in tax returns as significant evidence.

Regarding the benami character of the property, both parties agreed it was benami, and the onus to establish this was not relevant. The court found that the property was indeed the individual property of the deceased, included in his estate. The judgment favored the Revenue, upholding the inclusion of Sita Ram Sadan in the deceased's estate as his personal property. The reference was answered in favor of the Revenue, with costs awarded to the assessee. The judgment was agreed upon by both judges, and a copy was to be transmitted to the Income-tax Appellate Tribunal as per the Income-tax Act, 1961.