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1954 (4) TMI 1 - SC - Income TaxWhether the learned High Court Judges erred in importing any question of capacity in which the income is held by Ratilal, into the application of Section 16(1)(c)? Held that:- The provision in the settlement deed giving the income back to Ratilal, even if it be taken as a retransfer of the income, cannot be treated as such retransfer to the original settlor, viz., the Hindu undivided family. Hence the last portion of clause (c) of Section 16(1) does not come into operation. It follows accordingly that the contention on behalf of the appellant that what was intended under the terms of the trust deed as the individual income of the respondent Ratilal becomes the joint family income by a process of successive application of the fictions enacted in the last portion of clause (c) of Section 16(1), and the two provisos thereto, cannot be accepted. This is enough, to dispose of the appeal. Appeal dismissed.
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