9911796707
TMI Blog1945 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ettlement executed by the petitioner in favour of his four daughters on 5th April, 1933, i.e., before the commencement of the Indian Income-tax Act, VII of 1939, can be deemed to be income of the petitioner under revocable transfers of assets as contemplated by clause (c) of sub-section (1) of Section 16 of the Indian Income-tax Act, XI of 1922, as amended by the Indian Income-tax Amendment Act, VII of 1939. For the year 1939-40 the appellant was assessed to income-tax on a total in-come of ₹ 2,19,640, which included a sum of ₹ 1,77,374, representing the total of the income arising from assets settled on his four daughters by the appellant by four deeds, all dated the 5th April, 1933, and all of which, subject to the necessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Income-tax (Amendment) Act, 1939 (Act VII of 1939), which came into force on the 1st April, 1939, by virtue of a Government Notification in terms of Section 1(2) of the Act, and to treat the income of the daughters as the income of the appellant. The appellant's objections to this course have so far been without success and are the subject of this appeal. The material part of Section 18 of the Act of 1939 is as follows:- 18. In Section 16 of the said Act,- (a) for sub-section (1) and (2) the following sub-sections shall be substituted, namely:- '(1) In computing the total income of an assessee,- **** (c) all income arising to any person by virtue of a settlement or disposition whether revocable or not, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him.' Before dealing with the particular grounds of appeal, their Lordships consider it desirable to make some general observations as to Indian income- tax law, which may clear away a certain confusion of thought which would appear to affect certain of the contentions in the present case. In the first place, it is clear to their Lordships that under the express terms of Section 3 of the Indian Income-tax Act, 1922, the subject of charge is not the income of the year of assessment, but the income of the previous year. This is in direct contrast to the English Income-tax Acts, under which the subject of assessment is the income of the year of assessment, though the amount is measured by a yardstick based on previous years. The dif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an only refer to the Indian Income-tax Act, 1922, as it stood amended at the date of the Indian Finance Act, 1939, and necessarily includes the alterations made by the Amending Act, which had already come into force on the 1st April, 1939. In this view, the only question is whether the income arising from the properties settled by the four deeds under consideration, falls within the terms of Section 16(1)(c) of the Income-tax Act. The first question would naturally be whether under these four deeds the assets from which the income arose remained the property of the appellant, or whether they involved a transfer of assets, though clearly a revocable transfer. From the way in which the present case has been presented throughout, including ..... X X X X Extracts X X X X X X X X Extracts X X X X
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