Shah, J. - (1.) One Surendra had by his wife Rameshchandrika (who died in 1947) three children -Darshan, Ranna and Rajeshri. By his second wife Pratima he had two sons and one daughter. Surendra, his wife Pratima and his children formed a Hindu undivided family. Surendra executed three deeds settling certain assets belonging to the Hindu undivided family in favour of his children Darshan, Ranna and Rajeshri, and appointed trustees to manage the assets and to collect the income arising therefrom. The three children also owned some property which they had inherited from their mother. Separate books of account were maintained in respect of the two sets of properties and come received therefrom. Surendra was also possessed of separate property. Expenditure for the education of the three children was it appears defrayed out of the income received from the trust estates.
(2.) In a proceeding for assessment of tax under the Expenditure-tax Act, 1957, of the Hindu undivided family for the assessment year 1958-59 the Expenditure Tax Officer brought to tax Rs. 20,508/- being the aggregate of the following heads of expenditure less the basic allowance of Rs. 30,000/-. Rs. 11,504/- Expenditure of the Hindu undivided family; Rs. 10,321/- Expenditure for the minors out of the separate properties, Rs. 28,683/- Expenditure incurred by Surendra out of his separate property. The order of the Tax Officer was confirmed by the Appellate Assistant Commissioner and the Appellate Tribunal.
(3.) The Tribunal referred to the High Court of Gujarat under S. 25 (1) of the Act three questions, out of which only two survive for consideration: "1. Whether on the facts of the case, in computing the taxable expenditure of the assessee H. U. F. the sum of Rs. 28, 683/- being the expenditure incurred by Shri Surendra, the Karta of the H. U. F. out of his own self-acquired and separate property was includible in law 2. Whether on the facts of the case in computing the taxable expenditure of the assessee H. U. F. the sum of Rs. 10,321/- being the amount spent by the trustees was includible in law - The High Court answered the two questions in favour of the assessee. Appeal No. 2523 of 1966 arises out of that order. ;