1979 (11) TMI 62 - HC - Income Tax

Summary

Issues:
1. Interpretation of the term "child" in Section 9(2)(a)(iv) of the Tamil Nadu Agrl. I.T. Act, 1955.
2. Application of statutory declaration in the Hindu Marriage Act, 1955, to the Tamil Nadu Agrl. I.T. Act, 1955.

Analysis:
1. The judgment pertains to tax revision cases involving the assessment years 1972-73 and 1973-74. The petitioner, an assessee, had settled properties on various family members. The key issue was whether the lands settled on the minor daughter of the petitioner through his third wife should be included in his total holdings for tax assessment purposes. The Commissioner held that the settled land should be included, leading to a challenge via a petition under Section 54(1) of the Tamil Nadu Agrl. I.T. Act.

2. The Court considered the interpretation of the term "child" in Section 9(2)(a)(iv) of the Act. The petitioner's counsel argued that, based on precedents related to the Indian I.T. Act, the term "child" should be construed to include only legitimate children, excluding illegitimate ones. The Court referred to past judgments supporting this interpretation, emphasizing the absence of legislative amendments indicating a different intent. Consequently, the Court held that "child" in the Act refers only to legitimate children.

3. The Court also addressed the potential application of a statutory declaration in the Hindu Marriage Act, 1955, to the Tamil Nadu Agrl. I.T. Act, 1955. The amended Section 16(1) of the Hindu Marriage Act declares children of void marriages as legitimate. However, the Court declined to import this declaration into the Agrl. I.T. Act, citing the Act's universal applicability across faiths and the potential exclusion of certain illegitimate children under the Agrl. I.T. Act. The Court emphasized the need to consider vital factors and declined to extend the statutory declaration to the tax assessment context.

4. Consequently, the Court allowed the revision cases, setting aside the Commissioner's order to include the settled land in the petitioner's holdings for tax assessment purposes. The judgment highlighted the need for a consistent interpretation of legal terms and the consideration of broader implications in applying statutory declarations across different legislative frameworks.