1964 (10) TMI 11 - SC - Income Tax

Whether, on the facts and circumstances of this case, the five annas share of the income of Amrit Chemicals or any part thereof for the year January 1, 1951, to December 31, 1955, accrued to the assessee and whether it could be charged in its hands ?

Held that:- In the present case at the date when Ashokbhai acquired the right to receive a share of profits, there was no subsisting joint family and his share of the profits was not received by him on behalf of the assessee.

There was in this case no assignment of the profits which had already accrued to the assessee. Profits accrued to Ashokbhai and on the date on which they accrued, the assessee had because of the deed of partition no interest in the profits. The revenue authorities could not claim that profits, which under the instrument of partition did not accrue or arise to Ashokbhai as representing the Hindu undivided family, must, for purposes of taxation, be so deemed. The High Court was, therefore, right in answering the question in the negative. Appeal dismissed.