9911796707
TMI Blog1989 (6) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... r otherwise. (4) On the facts and in the circumstances of the case, the AAC erred in reducing the total income by Rs. 54,190 on the basis of his above decision. 2. We have heard in detail the rival submissions made both on behalf of the revenue as well the assessee. 3. Relevant facts are these : For the assessment year 1980-81, the appellant returned an income of Rs. 30,800 accrued to her from various properties. In the Note accompanying the return of income for 1982-83 filed in response to a notice u/s. 143(2) of the IT Act returning a mere income of Rs. 3,000, it was stated that as a result of a family settlement dated 21-3-1980, duly registered, the appellant got absolute interest only in one house property bearing No. 9-1-145 to 147 from the aforesaid date used by the assessee substantially as her abode. 4. For the assessment year 1981-82, however, the assessee did not file any return of income. In respect of the assessment for the year under account, the assessee filed a copy of the Will to show how, the various properties had come to her. This document dated 24-10-1938 executed by the assessee's grandfather possessing several immovable properties at Secunderabad beque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the immovable properties, subject-matter of the family arrangement to enter upon it ; as a result the assessee continued to have life interest in all the properties bequeathed to her in the erstwhile manner. 8. Aggrieved, the assessee filed an appeal and met with success. It is how the revenue is aggrieved by the order dated 12-3-1986 passed by the learned Appellate Asstt. Commissioner on grounds set out hereinbefore. 9. On behalf of the revenue it has been contended that the document dated 21-3-1980 was sham particularly as it did not spring out of any real necessity for a family arrangement and not occasioned in the facts and circumstances of the case. That the assessee who had only a life interest in terms of the will was legally precluded from entering upon such an agreement binding the reversioners to whom the property had to go after her demise. As against this, the learned counsel for the assessee submitted that the family arrangement was arrived at primarily with a view to maintain peace and harmony amongst the members of the family and to avoid any future disputes and discord anticipated particularly after the death of the assessee. That there was no premises on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute and acknowledges that the sole and absolute title to all the properties resides in only one of their number (provided he or she had claimed the whole and made such an assertion of title) and are content to take such properties as are assigned to their shares as gifts pure and simple from him or her, or as a conveyance for consideration when consideration is present." 13. Spelling out the conditions which will admit of the existence of such an arrangement, the Court held that a family arrangement can as a matter of law be implied from a long course of dealings between parties. Further the conduct of the various members of the family is relevant to show that their actings, viewed as a whole, suggest the existence of the family arrangement. It was, further, held that at a great distance of time gaps in evidence that would otherwise be available have to be filled in from inferences that would normally have little but corroborative value. 14. In another decision in M.N. Aryamurthy v. M.L. Subbaraya Setty AIR 1972 SC 1279, dealing with the essential requisites of a family arrangement, their Lordships of the Apex Court held as under : "These are : (i) there must be an agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a consideration of all the facts, the document in question was inoperative both as Will or as a family arrangement, does not help the revenue. The Supreme Court arrived at this finding as the document in question that is the Will nor the pleadings nor the evidence brought on record demonstrated that there was any occasion for agreeing to a family arrangement or that the motivation which is necessary for a family arrangement was ever present in the mind of the testator and his sons when the Will was executed. Moreover, one of the signatories being a minor son of the executant, it was not a binding arrangement. 17. As is, therefore, manifest, the facts being entirely different, they have no application to the present case. As for ratio decidendi of this case is concerned, various principles were expounded by the highest Court which have been reproduced above and we find ourselves in agreement with the learned first appellate authority that they apply to the facts of the present case with full force as we also would be analysing in detail hereinafter. 18. It is very pertinent to mention here that at the time the Will was executed by the late Ram Pershad on 24-10-1938, Shri C. S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is achieved even during her lifetime." 20. Now if the parties with a view to avoid discord in the family have arrived at a family arrangement wherein all of them have followed the policy of give and take, we do not find any reason to discard such an arrangement. The obvious consideration for this arrangement is to avoid litigation and dissensions in the family and harmonisation of inter se relationship. Such an arrangement surely and has in fact satisfied all the possible successors to the property--present, future or remote. It will have the effect of saving the family frame from being battered and shattered. 21. There is yet another aspect. Smt. Sona Bai was bestowed by the will only with a life interest. After her death, the properties had to be enjoyed by Shri Shamlal. If the latter has predeceased the former it would be going to Shri C. S. Suresh according to the stipulations of the Will. Now if instead of locking horns and taking into account the imponderables about the life and death cycle not knowing as to who will predecease whom and instead of articulating their grievances publicly and averting the danger of hostility looming large, all of them by sitting across the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
