COMMISSIONER OF WEALTH TAX Vs. CHANDER SEN

JUDGEMENT

(1.) THIS is a consolidated reference relating to assessment years 1966 -67 and 1967 -68, arising out of proceedings under the Wealth -tax Act of the Hindu undivided family consisting of Lala Chander Sen, the karta, and his four sons. The connected reference is under the Income -tax Act and relates to the assessment year 1968 -69. A common question of law arises in both these cases. Hence, they are being disposed of by a common judgment.

(2.) LATE Rangi Lal and his son, Chander Sen, constituted a Hindu undivided family. This family had some immovable property and a business carried on in the name of Khushi Ram Rangi Lal. On October 10, 1961, there was a partial partition in the family by which the business was divided between the father and the son, and, thereafter, it was carried on by a partnership consisting of the two. The firm was being assessed to income -tax as a registered firm and the two partners were being separately assessed in respect of their share of income. The house property of the family continued to remain pint. On July 17, 1965, Rangi Lal died leaving behind him his son, Chander Sen, and his grandsons, i.e., the sons of Chander Sen. His wife and mother had predeceased him and he had no other issue except Chander Sen. On his death there was a credit balance of Rs. 1,85,043 in his account in the books of the firm.

(3.) IN the connected reference under the INcome -tax Act, it has referred the following question :