9911796707
TMI Blog1967 (3) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, he was assessed in the status of individual in respect of his income. He died on October 9, 1954. His estate including the Government securities thereupon passed to his three sons who constituted a Hindu undivided family. The eldest of them succeeded to the title of Raja of Bhor. For the assessment years 1954-55 to 1958-59 the present Raja of Bhor filed returns as a Hindu undivided family consisting of himself and of his two brothers. He claimed exemption in respect of the interest income with regard to the Government securities on the ground that it was exempt under the notification issued under section 60 of the Income-tax Act, 1922. Section 60 empowers the Central Government, by notification in the Official Gazette, to make exemption, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affirmed the decision of the Appellate Assistant Commissioner and dismissed the appeal. At the instance of the income-tax department the Appellate Tribunal stated a case to the High Court on the following question of law : "Whether, on the facts and circumstances of the case, the interest on securities assessable under section 8 of the Income-tax Act was exempt from tax in the assessee's hands in view of the Notification No. 878F dated March 21, 1922, issued under section 60 of the Income-tax Act ? " By its judgment dated October 19 1962, the High Court of Bombay answered the question in the affirmative and in favour of the assessee. These appeals are brought in pursuance of a certificate of fitness granted by the High Court under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tra on behalf of the appellant that the securities belonged to the Hindu undivided family which was a separate unit of assessment under the Income-tax Act. It was submitted that the Hindu undivided family was assessed to income-tax as a distinct entity or unit of assessment in contradistinction to its members. It was therefore argued by Mr. Mitra that since the securities belonged to the Hindu undivided family, the exemption contained in the notification dated March 21, 1922, will not apply to the present case. In our opinion, there is a fallacy lurking in this argument. It is true that for the purposes of income-tax the Hindu undivided family is assessed as a distinct entity or unit of assessment under the provisions of the Income-tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n predicate of the joint and undivided property, that he, that particular member, has a definite share, one-third or one-fourth-(Lord Westbury in Appovier v. Rama Subba Aiyan). His interest in the coparcenary property is a fluctuating interest which is capable of being enlarged by death in the family and liable to be diminished by birth in the family. It is only on partition that the coparcener is entitled to a definite share. But the important thing to notice is that the theory of ownership being acquired by birth has given rise to the doctrine of samudavika swatwa or aggregate ownership in the Mitakshara school. Till partition therefore all the coparceners have got rights extending over the entirety of the coparcenary property. It is ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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