Sikri, J. - (1.) This appeal in pursuance of a certificate granted under S. 66-A (2) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act, is directed against the judgment of the High Court of Assam in a reference made to it under S. 66 (2) of the Act. The question referred to by the Appellate Tribunal was "whether in the circumstances of the case the Tribunal was justified in assessing the income of the minors in the hands of the guardians as the income of a Hindu undivided family."
(2.) The relevant facts out of which the reference arose are as follows:Shri Kishanlal Agarwalla died intestate in December 1950 leaving his widow and two minors, Basanta and Ashok. Prior to his death he was being assessed as an individual on the income arising from the business carried on in the name of Shri Krishan Rice Mills, Tezpur. He was governed by Mitakshara School of Hindu Law. The widow also died in 1952. On the death of the widow an application was made by Shri Nandlal Agarwalla to the Court of the District Judge, Gauhati, for being appointed as a guardian of the person and the properties of the two minors, Basanta and Ashok. The District Judge, by his order dated June 1, 1953, appointed him temporarily the guardian of the person and properties of Basanta and Ashok, till the disposal of the application, and transferred the file to the Subordinate Judge, L.A.D., Nowgong. On December 15, 1953, the Sub-Judge appointed Shri Dwarka Prasad Agarwalla and Shri Nandlal Agarwalla guardians of the person and properties (as per the schedule in the application) of Basanta and Ashok. The guardians were directed to render accounts half yearly in the months of March and September each year, i.e., by the 31st March and 30 September, each year until the minors attained majority.
(3.) It is not necessary to mention what happened in the assessment years 1951-52, 1952-53 and 1953-54 because nothing turns on that. For the assessment year 1954-55, which is the subject-matter of this reference, a return was filed in the status of a Joint Hindu Family by the two guardians.;