S RAGHBIR SINGH SANDHAWALIA Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF PUNJAB AND HARYANA
S.RAGHBIR SINGH SANDHAWALIA
COMMISSIONER OF INCOME TAX
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(1.) THE following question has been referred to this Court under Section 66 (1) of the Income-Tax Act, namely :
"whether the gift of a joint family asset worth Rs. 2,40,000/- by Shri raghbir Singh, karta of the family, to his wife, Sardarni Ahalya Bai, not being a transfer for consideration or in pursuance of any ante-nuptial arrangement or in connection with any arrangement to live apart, is valid and effective to divest the family of its title to the said shares without the consent of the other adult coparcener, Shri Raghbir Singh's son Shri Harindar Singh?"
(2.) SARDAR Raghbir Singh assessee and hia only son Sardar Harindar Singh are members of a Hindu undivided family which possesses landed and other property, the value of which runs into several millions.
(3.) SARDAR Raghbir Singh's wife Sardarni Sujan Kaur died in the year 1943 and he contracted a marriage with Sardarni Ahalya Bai in or about the year 1945. On the 31st March 1949 the assessee made a transfer entry in the books of the family debiting the capital account with a sum of Rs. 2,40,000/-representing 80 per cent share capital of 300 shares of the Simbholi Sugar Mills Limited and crediting the account of Sardarni Ahalya Bai with a corresponding amount. In the year 1950-51 the assessee, who is the karta of the Hindu undivided family, submitted a re-turn in which he declared an income of Rs. 1,03,952/ -. This return did not include the in-come on 300 shares of the Simbholi Sugar Mills which had been transferred by the assessee to his wife. Sardarni Ahalya Eai submitted a separate return of her own in which she declared that she had received a sum of Rs. 48,000/-by way of income on the shares which had been transferred to her.;
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