9911796707
TMI Blog1973 (7) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... ried minor daughter and a wife and they form a joint Hindu undivided family. So also Ramprasad has a minor son, an unmarried daughter and a wife and they form a joint Hindu undivided family. Both Ramgopal and Ramprasad are possessed of individual and separate properties. By two separate declarations made on March 26, 1959, Ramgopal and Ramprasad declared that 500 fully paid up shares of a limited company by name Messrs. Ramgopal Ramprasad Private Ltd. are thrown into the common hotchpot of the joint Hindu undivided family and from the date of the said declaration the said 500 shares belonged to the joint Hindu undivided families and they shall not have any interest or title therein in their individual capacity. The questions referred to us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers both the Hindu undivided families as well as the individuals, Ramgopal and Ramprasad, preferred appeals to the Appellate Assistant Commissioner. These appeals were heard by the two Appellate Assistant Commissioners and they were rejected by them. In one of the appeals an alternative finding was given that in any event the dividend income of these 500 shares was includible in the income of these two assessees as individuals under the provisions of section 16(3)(b). On appeal by the Hindu undivided families and by Ramgopal and Ramprasad the Tribunal allowed the appeals and held that the two Hindu undivided families were entitled to the refund applied for and the income in respect of the 500 shares was not liable to be includible in the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of this clause a settlement, disposition or transfer shall be deemed to be revocable if it contains any provision for the retransfer directly or indirectly of the income or assets to the settlor, disponer or transferor, or in any way gives the settlor, disponer or transferor a right to reassume power directly or indirectly over the income or assets : ...... " Besides this proviso, there are two other provisos, but it is unnecessary to refer to the same as neither of them is relied upon by counsel for the revenue. The provisions of this sub-section came up for consideration before the Supreme Court in Commissioner of Income-tax v. S. Raghbir Singh. The Supreme Court points out that clause (c) of section 16(1) was intended, while see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By paragraph 4 he says that out of the said shares of Messrs. Ramgopal Ramprasad Private Ltd. he on March 26, 1959, gifted 500 fully paid up ordinary shares to the said joint Hindu family. By paragraph 5 he has declared that he has thrown into the common hotchpot of the joint Hindu family the said 500 shares of his own free will and that he shall not have any interest or title thereto in his individual capacity. The sixth paragraph is a formal paragraph stating that the facts in the declaration are true to his own knowledge. A mere reading of this declaration makes it clear that with effect from March 26, 1959, the 500 shares of the limited company ceased to be the property of either Ramgopal or Ramprasad, but they became the property of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
