LACHHMAN DAS Vs. COMMISSIONER OF INCOME TAX, PUNJAB, N W F AND DELHI PROVINCES, LAHORE

JUDGEMENT

(1.) This is an appeal under the provisions of S. 66a, Income - tax Act, 1922, from a judgment and decree of the High Court of Judicature at Lahore dated 8 April 1944, delivered and passed on a reference made by the Income - tax Appellate Tribunal Punjab under S.66 (1), Income - tax Act, 1922 (Act 11 [XI] of 1922), as subsequently amended, and hereinafter referred to as "the Act."

(2.) The year of assessment concerned is 1938 - 1939. The question referred to the High Court by the Income tax Appellate Tribunal (hereinafter called the "tribunal") was as follows: "Whether in the circumstances of this case, there could be a valid partnership between Lachhman Das as representing a Hindu undivided family on the one hand and Daulut Ram, a member of that undivided Hindu family in his individual capacity, on the other ?" This question was decided by the High Court in the negative-thereby reversing the decision of the Tribunal dated 8 September 1942.

(3.) A Hindu named Tulsi Ram had two sons, Chunilal and Lachhman Das (the appellant). Chunilal had three sons and Lachhman Das had seven sons, two of whom were named Daulat Ram and Kanhaya Lal. Shortly before his death in 1930 Tulsi Ram made a gift of Rs. 30,000 to Daulat Ram. Daulat Ram deposited this sum at interest with the firm of the joint family carried on by Chunilal and Lachhman Das. The family was governed by the Mitakshara law.