1981 (7) TMI 54

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... to be the income of the depositor and chargeable to tax, to be assessed as such. In this case, one Mrs. E. M. Ebrahim, made certain annuity deposits under the I. T. Act. If repayments had been made to her, they would certainly have been taxed under the deeming provisions of the Act and the Scheme. However, she died before the deposits were refunded leaving behind her surviving two sharers, one of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r death to her legal representatives, the Tribunal held that the principal part of the refund cannot be charged to tax in the assessment of the legal representative as part of his income. It may be observed that there was no dispute about the taxability of the interest portion of the refund, whoever might be the recipient. In rendering this decision, the Tribunal followed an earlier decision of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n in the facts call for any difference in the principle on which the earlier decision is based, namely, that a refund of principal under the annuity deposit scheme is taxable as deemed income only in the hands of the depositor who made the initial deposit and not in the hands of any other person. The question referred by the Tribunal for our opinion is as follows: "Whether, on the facts and in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X