TMI Blog1969 (12) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... elivered by SHAH J.-- Arunachalam Chettiar--who will hereinafter be called " A. Senior " had three wives--Valami Achi, Lakshmi Achi and Nachiar Achi. By Valami Achi he had a son who was also called Arunachalam--we will call him " A. Junior ". A junior married Umayal Achi. A. Senior, A. junior and the wives of the two members formed a joint Hindu family,possessing a large estate in Ceylon. A. junior died on July 9, 1934. A. senior died on February 23, 1938, leaving him surviving his two wives, lakshmi Achi and Nachiar Achi, and his son's widow, Umayal Achi. The revenue authorities in Ceylon levied Rs. 2,21,743 as estate duty in respect of the estate of A. junior and Rs. 6,33,601.76 in respect of the estate of A. senior. The levy was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner. The Income-tax Appellate Tribunal, however, reversed the order holding that the amount of interest received by the assessee was of a capital nature and was on that account not liable to tax. The Tribunal referred the following question to the High Court of Madras under section 66(1) of the Income-tax Act, 1922 : " Whether the sum of Rs. 1,20,830 or any part thereof is assessable to tax ? " The High Court was of the opinion that the assessee's share in the interest attributable to the period ending February 17, 1947, was not taxable, but the share attributable to the period between that date and the date of payment by the Ceylon Government was taxable. Against that decision, with certificate granted by the High Court, the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the adopted son of Nachiar Achi being a share in the estate of A. Senior was of the nature of capital, because the question did not arise out of the order made by the Income-tax Appellate Tribunal and was not made the subject-matter of the reference. In Ramanathan Chettiar's case the question argued before the High Court in this case was not raised before the Income-tax Appellate Tribunal and was not decided. After the death of A. Senior the property was held by the three widows as members of the Hindu undivided family. It is not predicated to a Hindu joint family that there must be a male member in existence. Even after the death of the sole male member, so long as the property which was originally of the joint Hindu family remains in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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