PREM CHAND Vs. COMMISSIONER OF INCOME TAX ANDHRA PRADESH HYDERABAD

JUDGEMENT

(1.) These five R.Cs. raise a question of law relating to the assessment of a family governed by the Benaras school of Mitakshara Hindu law and can be disposed of together.

(2.) We shall first advert to the facts in R.C. No. 62/78. Sri Sardarilals wife is Smt. Janaki Bai and they have a son. There was a registered partition, dated 27/10/1970, among them in which the joint family properties were divided and as the parties belong to the Benaras school of Mitakshara law, a share was given to Smt. Janaki Bai also, comprising of certain houses valued at Rs. 63,600 and she was taxed on the income therefrom. For the assessment year 1974-75, Sri. Sardarila filed a return as a HUF in respect of the property obtained by him at the partition, dated 27/10/1970. The ITO assessed his taxable income at Rs. 37,470 but chose to apply (a higher) rate of tax as per Sub-para. II of Para A of Schedule I to the Finance Act, 1974, as in his opinion there was at least one member of the HUF having an income exceeding the taxable limit, inasmuch as the petitioner did not fill in the particulars as per annex. I whether the family had at least one member whose total income exceeded the taxable limit.

(3.) The petitioner filed an appeal the AAC who allowed the appeal on 16/08/1975, holding that there was a partition and the family consisted only of the petitioner and his wife, that his wife was not having any taxable income and, therefore, he directed the ITO to apply the rates as per Sub-para. I of para. A of Sch. I to the Finance Act, 1974.