INCOME TAX OFFICER Vs. SONABAI
LAWS(IT)-1989-6-3
INCOME TAX APPELLATE TRIBUNAL
Decided on June 09,1989

Appellant
VERSUS
Respondents

JUDGEMENT

R.D. Agrawala, Judicial Member - (1.)FOLLOWING are the four grounds taken in this appeal preferred by the revenue pertaining to the assessment year 1982-83, in respect of the assessee by status an Individual:
(1) On the facts and in the circumstances of the case, the AAC erred in holding that the deed of family arrangement and settlement dated 21-3-1980 as a valid document and that the assessee is assessable only in respect of the income arising from the properties bearing Municipal No. 9-1-145 to 147.

(2) The AAC ought to have held that the family arrangement among the assessee, her sons and their families in respect of the subject properties made during the lifetime of the assessee contravenes the directions given in the will dated 24-10-1938 left by the assessee's grandfather and is invalid.

(3) The AAC ought to have noticed Smt. Sonabai had no powers to alienate the property, when she herself had only a limited interest whether as part of family settlement or otherwise.

(4) On the facts and in the circumstances of the case, the AAC erred in reducing the total income by Rs. 54,190 on the basis of his above decision.

(2.)We have heard in detail the rival submissions made both on behalf of the revenue as well the assessee.
Relevant facts are these : For the assessment year 1980-81, the appellant returned an income of Rs. 30,800 accrued to her from various properties. In the Note accompanying the return of income for 1982-83 filed in response to a notice Under Section 143(2) of the IT . Act returning a mere income of Rs. 3,000, it was stated that as a result of a family settlement dated 21-3-1980, duly registered, the appellant got absolute interest only in one house property bearing No. 9-1-145 to 147 from the aforesaid date used by the assessee substantially as her abode.

(3.)FOR the assessment year 1981-82, however, the assessee did not file any return of income. In respect of the assessment for the year under account, the assessee filed a copy of the Will to show how, the various properties had come to her. This document dated 24-10-1938 executed by the assessee's grandfather possessing several immovable properties at Secunderabad bequeaths life interest to the assessee in most of these properties.


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