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1964 (9) TMI 7 - SC - Indian LawsWhether the High Court was right in holding that the respondent should be assessed on his share of the income and not on the income of the four brothers as "association of individuals? Whether the assessee is entitled to a deduction under section 6(e) of the Act in respect of the expenditure incurred by him for the maintenance of the palace and other buildings of the estate? Held that:- In the present case the four nephews of Raja Khaja Pershad succeeded to the estate as co-sharers and each one of them was entitled to 1/4 share of the income from the estate. They did not form a unit for the promotion of any joint enterprise to earn income, profits or gains. The collection of the entire income from the estate by one of the sharers or even by a common employee will not make that income an income from a joint venture. Each of the sharers gets his income as an individual and not as an association of individuals. In this view, the High Court was right in answering the first question in favour of the respondent. Whether section 6(e) of the Act applies or section 14(5)(a) of the Hyderabad Income-tax Act, 1357F., applies, the respondent would be entitled to a deduction from his income of the expenditure incurred by him for the maintenance of the palace and other buildings of the estate. The answer given by the High Court to the second question is also correct. Appeal dismissed.
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