Sikri, J. - (1.) This is an appeal on certificate granted by the Gujarat High Court under S. 66A (2) of the Indian Income tax Act, 1922, hereinafter referred to as the Act, and involves the interpretation of S. 16(3)(a)(iii) and S. 16(3) (a)(iv) of the Act. The facts are not in dispute and it is not necessary to record the findings of the Income-tax Officer and the Assistant Appellate Commissioner. It is sufficient to extract the relevant facts from the order of the Appellate Tribunal.
(2.) The respondent, Keshavalal Lallubhai Patel, hereinafter referred to as the assessee, was assessed till the assessment year 1952-53 (Accounting year ending March 31, 1952) as an individual. On April 18, 1951, he swore an affidavit before the Deputy Nazir, District Court, Ahmedabad, throwing all his self-acquired properties, mentioned in the affidavit, into the common hotchpotch of the Hindu undivided family, consisting of himself and his two sons. The assessee had a wife and two sons, one a major and the other a minor. However, no entries in the books were passed. On June 12, 1951, an oral partition was effected between the several members of the Hindu undivided family, and consistent with this partition, entries in the books were made. A joint declaration was made by the assessee, his wife and the major son on June 26, 1951, before the District Court. Later, a joint statement was made on December 5, 1951, before the Revenue Court. Properties were transferred thereafter in accordance with this arrangement to the means of the several members of the family.
(3.) For the assessment year 1952-53, the assessee claimed that assessment should be made taking into consideration the conversion of the self-acquired into joint family property and the subsequent partition. The Appellate Tribunal confirmed the order of the Income-tax Officer and Assistant Appellate Commissioner disallowing the claim of the assessee on the ground that "throwing into the hotchpotch one's self-acquired property, and a subsequent partition amongst the members of the Hindu undivided family is an indirect transfer of the property within the meaning of S. 16(3) of the Act. " The Appellate Tribunal at the instance of the assessee referred the following question to the High Court: "Whether on the facts and circumstances of this case the throwing into the hotchpotch of the applicant's self-acquired property and the subsequent partition among the members of the Hindu undivided family is an indirect transfer of property so far as the wife and minor son are concerned, within the meaning of Section 16(3)(a)(iii) and (iv) of the Income tax Act - ;