TATAVARTHI RAJA AND SATYANARAYANAMURTHY Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF ANDHRA PRADESH
TATAVARTHI RAJA And SATYANARAYANAMURTHY
COMMISSIONER OF INCOME TAX
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A.D.V.REDDY, J. -
(1.)IN a suit, O.S. No. 47/54, on the file of the Sub Court, Tenali, filed by one Tatavarthi Raja
Syamala, widow of Sitharamarao, one of the three sons of one Nagapotharao, there was a
compromise, under which she was tentatively allotted certain items of property, and as per the
arrangement she was allowed to enjoy the income from the property, paying taxes thereon
pending the suit. The suit finally ended in a final decree passed on March 16, 1961. For the asst.
yr. 1959 60, when the assessment was being made on the joint family, the assessee claimed that
there was a partition even on April 1, 1956, and she was allotted certain properties for her
enjoyment and, therefore, an order under S. 25A of the Indian IT Act, 1922, should be made
declaring that there was a partition of the joint family as on April 1, 1956, when the compromise
memo was filed into Court. This was rejected by the ITO as well as by the AAC and by the Tribunal.
Hence this reference.
(2.)UNDER S. 25A of the Indian IT Act, 1922, a mere division in status is not enough to claim the benefit. The properties should have been partitioned among various members of the joint family in
due proportions, i.e., by metes and bounds. In this case, admittedly, there was no partial partition
as such and there was no decree recognising the same. Even the memo filed into Court by the
defendants in the suit says that they are willing tentatively to deliver possession to the plaintiff in
the suit of the properties mentioned in the schedule, fetching a rent equal to 1/4th share. To this
memo, in reply the plaintiff had filed memo accepting the arrangement; therein she states that
"this selection shall continue till final decree in the suit is passed and shall be without prejudice to
the contentions of either side". This shows that this was purely a temporary arrangement that they
had come to and the actual final decree giving her the rights in the property was passed only on
March 16, 1961. Therefore, it cannot be said that there was a partition among the members in
definite portions. This arrangement certainly would not have given her a right to alienate even her
interest in the property, which she would otherwise be able to, in case there was a decree in her
favour. We, therefore, hold that there was a partition only on March 16, l961, as held by the
Tribunal. This reference is answered accordingly. No costs.
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