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TMI Blog1942 (2) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of this case, assessable income under the Income Tax Act; and (2) if the answer to question (1) be in the affirmative, could such sum be assessed in this case by proceedings taken under Section 34, Indian Income Tax Act? The assessee is the Raja of Jharia, the owner of an impartible estate, and was assessed for the year 1937-38 upon a sum of ₹ 4,42,142 on account of his income from various assessable sources after allowing a deduction for ₹ 19,587 which he paid in that year as maintenance allowance to the Ranis of Jharia, but as the result of an order passed by the Commissioner of Income Tax on the result of an order passed by the Commissioner of Income Tax on the 12th September, 1938, by which he sets aside the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court who directed the Commissioner by an order dated the 3rd of October 1940, to state a case upon the question already stated in the beginning of the judgment The Commissioner has sent up a statement of the case for our decision. The facts found are that the assessee succeeded to the Jharia estate on the death of his predecessor, the late Raja Durg Prasad Singh, as a result of a protracted Civil Court litigation between the assessee on the one hand and the windows of Raja Durga Prasad Singh called the Ranis, on the other hand. The Rsnis claimed the entire properties of the late Raja Durga Prasad Singh on the ground that the assessee was not a member of the joint family with their deceased husband and there was no male member in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,587 which he paid to the Ranis in he year of assessment was not a part of his income but was the amount received by him for and on account of the Ranis, and, therefore, was an admissible deduction and no tax was payable by him on that amount, In my opinion the contention of the assessee is correct and ought to have been accepted. Their Lordships of the Judicial Committee in the case of Raja Bijoy Singh Dudhuria1, had to consider a similar situation. In that case under a decree of the Court the entire estate comprising all assessable and non-assessable source of income of the assessee was charged with payment of maintenance annually to his step-mother. Lord Macmillan in delivering the judgment of their Lordship in the appeal preferred by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the final result of (1) (1933) 1 ITR 135: 6 I. T. C. 449: 61 I. A. 196 the litigation was that the family. It follows that the assessee is member of such family and the maintainance allowance is received by her in that capacity. The allowance is therefore exempt under Section 14 (1). It has of course been held by the Patna and Madras High Courts in the cases of Rajha Jyoti prasad singh and the Raja of Bobbili2, respectively, that the income of an impartible estate is the income of the individual who for the time being holds the estate and the income of the individual who for the time being holds the state and the income of the Hindu undivided family of which he is the Head; and as the Raj in this case is an impartible Raj it may be argued f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this sum which he recipes for the Ranis and which never becomes income in his hands. Learned Counsel for the assessee withdrew the second question and desired us not give an decision on that question. Accordingly I refrain from giving any decision on that question. The assessee is entitled to his costs of this reference. Hearing fee so fixed at ₹ 250. The assessee will also be entitled to withdrawn that sum of ₹ 100 which was deposited by him before the Commissioner as the fee for making a reference to the High Court. M. J. C. 78 of 1940. In this case also the assessee is the Raja of Jharia and the question which the Commissioner of Income Tax has been called upon to state under Section 66 (3) of the Indian Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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