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TMI Blog1986 (4) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... however is regarding the existence of the bigger HUF and the question whether that HUF can be said to have disrupted actually or legally at that point of time. The case of the Department has been that during his life time H. H. Sir Sawai Man Singhji held all the assets in the status of individual, and that after his death all his six heirs inherited in their individual capacity. But the late Maharaja had filed returns during his life time in the status of individual and after his death his sons claimed that he held some assets in the status of Karta of the bigger HUF and other assets as an individual and they had filed the returns according. The WTO framed separate assessments, i.e. substantially in the status of individual and the other set of assessments in the HUF status on a protective basis. However, the Tribunal had held for asst. yr. 1969-70 and 1970-71 that the income-tax assessments had to be framed in the status of HUF. The Department is in reference before the Hon ble High Court on this point. The income-tax assessments from asst. yr. 1963-64 onwards were restored to the ITO by the CIT(A) in the light of the above mentioned finding of the Tribunal. For the asst. yrs. 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ari, are both taxable in the hands of the appellant in the status of individual instead of the appellant s status as Karta of his smaller HUF. 3. On the facts and circumstances of the case, the arrears of wealth-tax liabilities under s. 2(m) of the WT Act are to be computed and allowed in accordance with the decision of the Hon ble Supreme Court in the case of CWT vs. Kanti Lal Manilal (1985) 45 CTR (SC) 220 : (1985) 152 ITR 447 (SC). Shri. S. K. Kandharia, the ld. counsel, for the assessee submitted that so far as grounds 1, 2 were concerned, they were not new but only by way of amplification of the exising grounds since the decision of the Supreme Court in the case of G. K. Magdum vs. Magdum had been reconsidered and modified by the Supreme Court itself in the case of State of Mahashtra vs. Narayan Rao Sham Rao Deshmukh Ors. In this connection, he further placed reliance on another decision of the Supreme Court in Kalloo Mal Tapeshwari Prasad HUF vs. CIT, Kanpur (1982) 26 CTR (SC) 415 : (1982) 133 ITR 690 (SC) wherein it was held that in the absence of an order under s. 171 regarding the fact of partition of HUF by the act of parties of any partition having been effected by o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l grounds of appeal. The additional grounds of appeal have been obviously necessitated due to the recent decision of the Supreme Court in the case of State ofMaharashtravs. Narayan Rao sham Rao Deshmukh Ors. The law laid down by the Supreme Court is binding on all Courts and authorities inIndiaunder Art. 141 of the Constitution ofIndia. So even if the additional ground had not been taken, the assessee would have been dully entitled to argue and to raise suitable contentions on the basis of the said decision of the Supreme Court in the case of Narayana Rao Sham Rao Deshmukh Ors. Therefore, the additional ground No.1 is entertained. The second additional ground is admitted as this is also legal and does to require any fresh in vestigation into facts. We do not see force in the submissions made on behalf of the Department while opposing the liability of these two additional grounds. However, so far as the third additional ground is concerned, the position is difference. It arises for the asst. yrs. 1971-72 to 1976-77 and has been taken up before us for the first time. It is also not a pure question of law. The determination of the arrears of liabilities (debt) on the relevant valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/6th nor 1/36th share (1/6th of 1/6th belonging to the Maharaja) in the assets belonging to the bigger HUF could be said to have devolved on the assessee HUF and the same would and should be presumed to remain in the bigger HUF. 7. So far as the assets (jewellery) left by Maharani Kishore Kumari on her death are concerned, according to the assessee, Maharaja Prithvi Raj inherited 1/3rd in his individual capacity, 1/3rd was inherited by Maharaja Jai Singh and the remaining 1/3rd by late H. H. Sir Sawai Man Singh. On the death of H. H. Sir Sawai Man Singh, his 1/3rd share according to the assessee, devolved on the six heirs as ancestral assets namely the four sons including Maharaja Prithvi Raj as Kartas of their smaller HUF and Maharani Gayatri Devi and the daughter Smt. Prem Kumari each taking 1/18th (1/6th of 1/3rd). It is this 1/18th share which the assessee HUF had declared for the assessment years in question. However, the CWT(A) held that like 1/36th share in the assets of the bigger HUF, the 1/18th share in these assets was also assessable in the individual status and not in the HUF of Maharaja Prithvi Raj. 8. We have considered the rival submissions on this point. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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