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TMI Blog1986 (9) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... also a son named Shri Harchintan Singh. In 1948, the said son was a minor. An agreement was executed on 19-7-1948 between the assessee, his wife and his aforesaid son (through the guardianship of the assessee's wife) whereby it was agreed that the assessee would pay to his wife and minor son maintenance amounts at the rate of Rs. 100 per month from 1-6-1948. The maintenance so far as the assessee's wife was concerned, was to cease on the wife remarrying. The maintenance in respect of the minor son was to cease on his attaining the age of 18 years. There was also a condition in the said agreement that the maintenance allowance shall not be open for revision by the assessee or his wife in any civil or criminal Court of law. It was also agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under the Hindu law the assessee was legally bound to provide maintenance to the wife and children. According to him, the right of the assessee's separated wife and son became an equitable charge on his property and, therefore, there was a legal obligation to maintain the wife and son. He, therefore, accepted the assessee's claim. 4. That is how the department has come up in appeal before us. On behalf of the department, Shri B.R. Tbora submitted that the house property of the assessee could not be said to be subject to an annual charge as claimed by the assessee. Reference was made by him in this connection to the agreement dated19-7-1948and to the letter dated7-12-1976of the assessee to his counsel. However, on behalf of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse property' shall be computed, where the property is subject to an annual charge (not being a charge created by the assessee voluntarily or a capital charge) after deducting the amount of such charge. The word 'charge' in the statutory expression 'annual charge' connotes something more than a mere liability to pay something more than the annual payment. The annual charge means an annual payment charged upon the house property. In the case of Sitaldas Tirathdas in computing his total income the assessee sought to deduct amounts paid by him as maintenance to his wife and children under a decree of Court passed by consent in a suit. No charge on any property of the assessee was created. On those facts, it was held by the Supreme Court that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son. It was held by the Hon'ble Andhra Pradesh High Court that the said interest was not includible in the assessee's total income. It is true that in the agreement dated19-7-1948it was not mentioned that the maintenance amount if not paid, would be a charge on property. But in terms of the decision of the Hon'ble Allahabad High Court in the case of Rani Pritam Kunwar it could be said that there was a voluntary settlement which could be enforced in a Court of law. We are of the view that in terms of section 24(1)(iv) there was thus an annual charge on the property. 6. This brings us to the question of quantum. The only agreement executed was of19-7-1948. There was no subsequent agreement or settlement. Therefore, the assessee cannot rely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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