9911796707
TMI Blog1966 (7) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... , when the case came up for hearing, this court found that the power of attorney executed by the heirs of Cherutty was necessary for deciding the question referred to us and accordingly called for a fuller statement of the case under sub-section (4) of section 66 of the Indian Income-tax Act, 1922, by order dated 12th August, 1964. We have now before us the additional statement as well as the copy of the power of attorney. And, as a result of the discussion at the Bar, it is now clarified that the only income with which we are concerned in this reference is the income derived by the felling of trees from a forest area that had been taken on a " verumpattom lease " by Cherutty, the deceased. Cherutty died on October 15, 1956, and we are conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lating to 1959-60 and one hundred acres in the next. " After referring to the decision of the Supreme Court in Commissioner of Income-tax v. Indira Balkrishna, the Tribunal came to the conclusion that there is no reason to hold that the heirs of the deceased Cherutty form an " association of persons " to be assessed as such in relation to the income which we have referred to. In the additional statement of the case, in paragraph 7, it is stated : " The document dated October 24, 1956, thus merely confers upon the eldest son, Devadasan, the power to manage the properties of the other co-owners. The shares of the co-owners are definite and ascertainable. There is no pooling of their shares in any fresh enterprise. There is therefore noth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om lease ", it is admitted, is not income derived from C. C. Brothers, a business referred to in the power of attorney. From the available material it appears that the income is what has been derived from the felled trees that were cut to make the land cultivable. It is not possible to spell out any joint venture solely from this operation. All that is said in the power of attorney, which incidentally is the only documentary evidence in this regard and the only material, is that immovable properties must be in the custody and possession of the power-holder. Each of the heirs takes a specific share and the heirs enjoy the property as tenants-in-common is not disputed. The Tribunal has not found that there has been an " association of persons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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