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TMI Blog1972 (2) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs. 14,100 from properties purported to have been transferred to Seth Chhadami Lal Jain Trust was not assessable in the hands of the assessee family ? So far as the second question is concerned, the Tribunal while discussing this question placed reliance on its decision in Income-tax Appeal No. 17157 of 1963-64 and Income-tax Appeal No. 11774 of 1964-65. It did not give any separate reasons for the present assessment year for holding that the income could not be included in the assessment of the assessee. A reference in respect of certain questions, arising out of the decision of the Tribunal in respect of those years was made to this court, and has been decided by us [being I.T.R. No. 72 of 1969 Commissioner of Income-tax v. Chhadam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (every three months) or as mutually agreed upon. " By another document dated 5th May, 1962, executed between the lessee, Sri Chhadami Lal Jain Trust, and Shri Chhadami Lal Jain Degree College, it was, inter alia, agreed as follows : ".....Therefore, the parties agreed upon the following terms and conditions regarding document and all the parties will abide by the conditions : (1) That we the party No. 1 (Chhadami Lal, son of Lala Motilal, and Bimal Kumar, adopted son of Chhadami Lal) has leased out the following properties on May 3, 1960, to party No. 2 (Jain Glass Works Pvt. Ltd.) for carrying on business of party No. 2 on an annual rent of Rs. 21,000 for ever and party No. 2 has taken over in the capacity of the director of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Officer, the Appellate Assistant Commissioner and also the Income-tax Appellate Tribunal. The Tribunal held that Rs. 21,000 was the rental income from the properties given on lease to Messrs. Jain Glass Works Ltd., and that the latter has been directed to pay Rs. 10,000 only directly to Chhadami Lal Jain Trust Degree College, Firozabad, and that this itself indicates that Rs. 21,000 was rental income of the assessee from the property in question, and that it was only a case of application of income, and the income had not been diverted before it accrued to the assessee. Counsel for the assessee has urged that on a fair interpretation of the lease deed, it is clear that an overriding title was created in favour of the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing so, it is not necessary to express any opinion as to whether this clause creates an overriding title in favour of the trust, in the event of a default being committed by the lessee in making payment of the lease money. We are of the opinion that the Tribunal was right, and that the amount in question constituted the income of the assessee. To sum up, our conclusions in answer to the questions referred are as below. Question No. 1:---The amount of Rs. 10,000 is the income of the assessee and not that of Chhadami Lal Jain Degree College. Question No. 2 :---The amount of Rs. 14,100 which was income from properties purported to have been transferred to the trust was assessable in the hands of the assessee-family. We answer the ques ..... X X X X Extracts X X X X X X X X Extracts X X X X
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