9911796707
TMI Blog1986 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee ? " The material facts giving rise to this reference, briefly, are as follows: The assessee is assessed in the status of an individual and the assessment year in question is 1971-72, the accounting year for which ended on Diwali, 1970. The assessee and his father had constituted a Hindu undivided family. A partition was effected between the assessee and his father on June 19, 1961, and a memorandum of partition was executed on July 9, 1961. As a result of that partition, the assessee received a sum of Rs. 50,000 as his share. The assessee created a private trust of the whole of the amount which he had received in partition by a registered deed of trust dated July 10, 1961. The trust was for the benefit of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property received by him in partition as his individual property and, hence, the Tribunal was justified in holding that the income of the trust was liable to be assessed in the hands of the assessee. Reliance was placed on the decisions in Surjit Lal Chhabda v. CIT [1975] 101 ITR 776 (SC) and CIT v. Vishnukumar Bhaiya [1983] 142 ITR 357 (MP). The answer to the question referred to this court depends upon the answer to the question as to whether the property, of which the trust was created, was or was not the individual property of the assessee. In N. V. Narendranath v. CWT [1969] 74 ITR 190, the Supreme Court held that when a coparcener having a wife and minor daughters and no son received his share of the joint family property on pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... convert the property of the Hindu undivided family consisting of himself, his wife and his minor daughter into individual property of the assessee. The property received by the assessee in partition belonged to the Hindu undivided family of the assessee, his wife and his minor daughter and the income of that property could not be taxed in the hands of the assessee, assessed in the status of an individual. In our opinion, therefore, the Tribunal was not justified in holding that the income from the private trust in question was assessable in the hands of the assessee as the income of the assessee. Our answer to the question referred to this court is, therefore, in the negative and in favour of the assessee. In the circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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