9911796707
TMI Blog1987 (3) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. On appeal, the Appellate Assistant Commissioner and, on further appeal, the Income-tax Appellate Tribunal agreed with the conclusion reached by the Income-tax Officer. Thus, under section 256(1) of the Income-tax Act (43 of 1961), for short, " the Act ", the Tribunal, at the request of the assessee made the following reference for the opinion of this court: " Whether, on the facts and in the circumstances of the case, and on a proper interpretation of the settlement deed dated July 16, 1971 (by mistake it was typed as January 20, 1977) executed by the assessee's father, the Tribunal was correct in law in holding that the undivided half interest in the property known as 'Daba Gardens' was settled upon the assessee in his individual cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is father, dated January 20, 1977, in which he stated: "...... in effecting the said settlement, it was my intention that the said property should go to the family of A. V. N. Jaggarao, consisting of himself and his sons, A. V. Adeep Bhanojirao and A. V. Monish Samarendra Rao, and in the settlement deed, it was mentioned that the property should go to my son and by that I clearly meant that it should go not merely to my son but also to the members of his family." The assessee also filed an account subsequently opened in the name of the Hindu undivided family and of the amount spent from the income towards the expenses of the family and the maintenance of the children. The authorities below found that the subsequent affidavit and the tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e given in proof of such contract, grant or other disposition of property or of such matter except the document itself or secondary evidence of its contents in cases in which secondary evidence is admissible. Where the terms of the contract or grant or any other disposition of the property or any matter, required by law to be reduced to the form of document, have been proved according to section 91 of the Evidence Act, section 92 postulates that no evidence of any oral agreement or statement shall be admitted, as between the parties to any such instrument or their representatives in interest, for the purpose of contradicting, varying, adding to, or subtracting from its terms. Section 94 of the Evidence Act declares that when the language us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of his natural love and affection which he bears to the settlee doth hereby settle absolutely upon the settlee the land and portion of the building ........" Clause (2) further says: "The settlor has this day delivered possession of 'B' scheduled property to the settlee herein and the settlee shall henceforth possess and enjoy the same absolutely." A reading of these clauses clearly indicates that Mr. Bhanoji Rao, father of the assessee, under the settlement deed dated July 16, 1971, settled his undivided half share on the assessee in the Daba Gardens with absolute right, title and interest and from that date, the assessee is entitled to enjoy his undivided half share in the Daba Gardens in his own right as true owner. In CIT v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ordinary rules of construction. In Bank of Chettinad Ltd. v. CIT [1940] 8 ITR 522 (PC), it was pointed out by the judicial Committee that the doctrine that in revenue cases the 'substance of the matter' may be regarded as distinguished from the strict legal position is erroneous." It is now a well settled principle of law that in revenue matters, when the authorities are called upon to construe the terms of a contract or of grant or any disposition of property, the parties cannot be permitted to, resile from the terms of the contract and introduce oral evidence in derogation of the terms thereof. Where the words in a disposition or contract or grant are free from ambiguity, it is always to be construed according to the strict, plain and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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