RAJA SHIVA PRASAD SINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a case stated by the Commissioner of Income-tax, Bihar & Orissa, under Section 66 (3) of the Indian Income-tax Act upon the following question : (1) Whether the amount of Rs. 19,587 paid as maintenance allowance to the two widows is in the circumstances of this case, assessable income under the Income-tax Act; and (2) if the answer to question (1) Whether the amount of Rs. 19,587 paid as maintenance allowance to the two widows is in the circumstances of this case, assessable income under the Income-tax Act; and (2) if the answer to question (1) be in the affirmative, could such sum be assessed in this case by proceedings taken under Section 34, Indian Income-tax Act?

(2.) THE assessee is the Raja of Jharia, the owner of an imprtible estate, and was assessed for the year 1937-38 upon a sum of Rs 4,42,142 on account of his income from various assessable sources after allowing a deduction for Rs. 19,587 which he paid in that year as maintenance allowance to the Ranis of Jharia, but as the result of an order passed by the Commissioner of Income-tax on the result of an order passed by the Commissioner of Income-tax on the 12th September, 1938, by which he sets aside the assessment of one of the Ranis with regard to the maintenance which she had received from the Raj, the Income-tax Officer started proceedings under Section 35 of the Indian Income-tax Act against the Raja, the income escaped being said to be Rs. 19,587 for which he had been allowed a deduction in the original assessment. THE Income-tax Officer following the decision of this (1) 2 I. T. C. 104 (4) (1939) 7 I. T. R. 362. (2) 8 I. T. R. 413 (5) (1940) 8 I. T. R. 236. (3) 8 I. T. R. 195. Court reported in 8 Income-tax Cases, 295 (Maharajadhiraja Kumar Visheswar Singh1), held : "It is immaterial whether the payment made by the assessee is in accordance with the obligation of the head of an undvided family or in pursuance of a Court decree. Whethever be the impelling force for making the payment neither the charcter of the allowances nor the capacity in which they are paid is altered He accordingly added the sum of Rs. 19,587 to the sum of Rs. 4,43,142 on which the assessee had been assessee had been assesed previously and made a fresh assessment under Section 34 of the Indian Income-tax Act on a total income of Rs. 4,62,929 by an order dated the 31st July 1939. An appeal against this decision was dismissed by the Appellaate Assistant Commissioner on the 11th December, 1939. THE Commessioner also refused to grant any relief to the assessee under Section 33 of the Indian Income-tax Act. THE assesses application to the Commissioner for referring the case to the High Court under Section 66 (2) of the Indian Income-tax Act was also rejected by the Commissioner on the 28th March, 1940. Against that order he moved this Court who directed the Commissioner by an order dated the 3rd of Octomber 1940, to state a case upon the quesion already stated in the beginning of the judgment THE Commissioner has sent up a statement of the case for our decision.

(3.) AS regards maintenance allowancem, howeverm there is some force in the assessees objection. AS already sstated, the final result of