9911796707
TMI Blog1997 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... Shyamalambal is the mother of the said Appa Rao and the paternal grandmother of the assessee. The said Shyamalambal had certain funds of her own and she gave these funds to Appa Rao and it was alleged that her intention in doing so was that the funds should be used for the benefit of the entire family. With those funds Appa Rao did business and entered into other various transactions. In course of time, Appa Rao acquired properties in his name utilising the money derived from the business and from the properties acquired therefrom. As disputes arose regarding the said properties and the businesses, the disputes were referred to the arbitration of two members of the Madras Bar named as joint arbitrators. Under the arbitration award, the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty may be joint property without having been ancestral. Where the members of a joint family acquire property by or with the assistance of joint funds or by their joint labour or in their joint business or by a gift or a grant made to them as a joint family, such property is the coparcenary property of the persons who have acquired it, whether it is an increment to ancestral property, or whether it has arisen without any nucleus of ancestral property." The High Court took into account the nature of the gift and referred to the arbitration decision. The High Court noted that the decree was ultimately passed in terms of the above. The High Court ultimately observed: "There is clear evidence that Srimathi K. Shyamalambal, wife of K. Sat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erties held by the assessee came from a lady relative. The Tribunal was of the view that since the source of the property was a gift it could not be treated as a joint family property. The High Court pointed out that the donor, Smt. Shyamalambal, wife of K. Satyanarayana, had funds of her own. With a clear intention of benefiting the family as a whole she provided funds to K. Appa Rao. The money in the hands of K. Appa Rao has to be treated as joint family property because Smt. Shyamalambal clearly indicated at the time of making of the gift that the funds were to be utilised only for the benefit of the family. K. Appa Rao, M. Satyendra Kumar and other brothers jointly held the property. The Tribunal (High Court ?) from all these facts came ..... X X X X Extracts X X X X X X X X Extracts X X X X
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