TMI Blog1964 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to it by the Appellate Tribunal against the revenue. The Appellate Tribunal had referred the following three questions : " 1. Whether there was material for the Tribunal to reach the conclusion that the various assets in question belonged only to the assessee in his individual capacity till 19th December, 1952 ? 2. If the answer to the first question is in the affirmative, whether the deed, Annexure " B " aforesaid, amounted to a transfer of assets to the three minor children aforesaid so as to attract the provisions of section 16(3) (a)(iv) of the Income-tax Act ? 3. If the answer to the first question is in the negative, the Income-tax Officer having rejected the claim of partition under section 25A and the assessee not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed as an individual not only on the income from the agency but also income from joint Hindu family property. He maintained only one set of accounts both for his income from the agency and from joint Hindu family property. In 1944, one son was born, and another son was born in 1945. On December 19, 1952, the assessee executed a deed of partition and on its basis claimed before the Income-tax Officer, in the course of assessment proceedings for the assessment year 1953-54 (accounting year ending March 31, 1953), that an order under section 25A be passed an separate assessments made on each of the members of the erstwhile family as from December 19, 1952. The Income-tax Officer held that " the mere existence of any ancestral property, how ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital to that effect .... This certainly cannot constitute art unequivocal declaration of the admitted individual investing his self-acquired properties with the character of joint family property referred to in the judgment in R. Subramania Iyer v. Commissioner of Income-tax " Accordingly, it held that the partition deed came within the ambit of section 16. As stated above, the Appellate Tribunal referred three questions to the High Court. The High Court answered the questions in the manner mentioned above. Mr. Rajagopala sastri, the learned counsel for the revenue, has urged the following points : (1) That question No. 2 did not arise out of the order of the Appellate Tribunal and the High Court should have refused to answer the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the parties of first, second and third parts and also to provide for making jewels, maintenance and marriage for the party of the fourth part, in exercise of his powers as a Hindu father, in order to ensure peaceful enjoyment and friendly relationship between the parties and to keep his own future earnings separate with powers to deal with them in any manner he liked. " Mr. Sastri contends that as the recital in the first clause reproduced above has been found to be false, there is no antecedent blending of the self-acquired property with ancestral property before it is partitioned am the parties. He says that all the clauses took effect on the signature of the deed, and no moment of time elapsed between the alleged blending and parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between the members of the joint family. It was certainly an unequivocal declaration that all the properties dealt with under that partition had been impressed with the character of joint family properties, properties belonging to the joint family of the assessee and his son. The genuineness of the transaction itself was never in issue. The result was that at least on 19th December, 1952 antecedent to the partition, the properties became impressed with the character of joint family property. There was a partition on 19th December, 1952. Thereafter, the properties allotted to the shares of the assessee and his divided sons were held by them in severalty." We have just pronounced judgment in Commissioner of Income-tax v. Keshavlal Lallubh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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