Sikri, J. - (1.) This appeal by special leave is directed against the judgment of the Madras High Court in a revision under section 54(1) of the Madras Agricultural Income Tax Act, 1955, hereinafter referred to as "the Act", whereby the High Court held that the settlement, which we will presently refer to, was hit by section 9(1) of the Act, and the income from the lands settled were liable to be included in the assessable agricultural income of the assessee. The relevant facts are these : The appellant, C.T. Senthilnathan Chettiar, hereinafter referred to as the assessee, executed a deed of settlement on November 19, 1959, in favour of Vatsala, who was his concubine. After reciting that the settlor had great love and affection for her, etc., the deed provides :"Now this indenture witnesseth that in consideration of the love and affection which the settlor has for the settlee and the promise which the settlor had made to the settlee the settlor hereby confers in favour of the settlee a life interest only in the properties set out in the schedule hereunder, without any powers of alienation whatever. The settlor puts the settlee in possession of the properties set out in the schedule. The settlee shall take possession of the abovesaid properties and enjoy them for her life and without any powers of alienation. The settlee shall not be entitled to alienate even her life interest in the properties set out in the schedule hereunder. After the lifetime of the settlee, the properties set out in the schedule hereto shall be taken by the children born to the settlee by the settlor who may be alive at the time of the demise of the settlee, absolutely and with full powers of alienation. Should there be no children for the settlee through the settlor at the time of death of the settlee, the properties set out hereunder shall revert back to the settlor or his heirs. This indenture further witnesseth that the settlor hereby specifically reserves his right to cancel or revoke or alter this settlement in case the settlee fails to reside with the settlor in his house and under this protection or conduct herself in any manner to the prejudice of the settlor and/or if any other circumstances intervene requiring the cancellation or alteration of this deed of settlement."
(2.) The Agricultural Income-tax Officer included the income from the lands settled under this deed in the hands of the assessee. The assessee filed a revision before the Commissioner of Agricultural Income-tax who held that the document evidenced a revocable transfer and the settled lands were an asset remaining the property of the settlor within the meaning of section 9(1) of the Act. He refused to exclude the income from the lands settled in the deed from the assessable income of the assessee.
(3.) The assessee then filed a revision under section 54(1) of the Act to the High Court. The High Court agreeing with the Commissioner held that the settlement was hit by section 9(1) of the Act. The assessee having obtained leave from this court, the appeal is now before us.;