9911796707
TMI Blog1967 (7) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... . The relevant facts are these : The appellant, C. T. Senthilnathan Chettiar, hereinafter referred to as the assessee, executed a deed of settlement on November 19, 1959, in favour of Vatsala, who was his concubine. After reciting that the settlor had great love and affection for her, etc., the deed provides : " Now this indenture witnesseth that in consideration of the love and affection which the settlor has for the settlee and the promise which the settlor had made to the settlee the settlor hereby confers in favour of the settlee a life interest only in the properties set out in the schedule hereunder, without any powers of alienation whatever. The settlor puts the settlee in possession of the properties set out in the schedule. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome from the lands settled in the deed from the assessable income of the assessee. The assessee then filed a revision under section 54(1) of the Act to the High Court. The High Court agreeing with the Commissioner held that the settlement was hit by section 9(1) of the Act. The assessee having obtained leave from this court, the appeal is now before us. We may mention that this court at the time of hearing of the application under article 136 gave liberty to the appellant to urge additional grounds, one ground being that section 9(1) of the Act was ultra vires the legislature and also violative of article 14 of the Constitution of India. The relevant provisions of section 9(1) of the Act, which are in terms similar to section 16(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which is not revocable for a period exceeding six years or during the lifetime of the person and from which agricultural income the settlor or disponer derives no direct or indirect benefit but that the settlor shall be liable to be assessed on the said agricultural income as and when the power to revoke arises to him. " The learned counsel for the appellant contends that the case was governed by the third proviso to section 9(1) and that till the power of revocation was exercised the income should not be assessed in the hands of the assessee. He further contends that the settlement deed creates two interests, viz., a life interest coupled with and followed up by an absolute interest created in favour of the children of the settlor thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Special Investigation Circle, Akola. But we are unable to allow him to raise this point because this court has held in K. S. Venkataraman & Co. v. State of Madras that the authorities under a taxing statute are not concerned with the validity of the taxing provisions and the question of ultra vires is foreign to the scope of their jurisdiction. As no such point could be raised before the income-tax authorities, neither the High Court nor the Supreme Court can go into these questions in at revision or reference from the decision of those authorities. This case was followed in Commissioner of Income-tax v. Straw Products Ltd. There is nothing in article 142 of the Constitution relied on by the counsel to enable us to deal with the questio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
