9911796707
TMI Blog1976 (2) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... TO on 25th March, 1974 at a total income of Rs. 47,690 as against the declared income of Rs. 10,392. 3. The dispute involved before us is whether the share income as separately apportioned in the said three firm's assessments as being that of Shri Jai Prakash was in the entirety assessable in the said individual's hands or whether only a portion of the said share income was assessable in his hands. According to the assessee, the share income in question was partly assessable in his hands and partly in the separate hands of his two minor sons—Shri Chand Prakash and Ravi Prakash and his minor daughter Rekha Kumari. 4. The ITO held that the case was covered by cl. (ii) of s.64(1), IT Act. He, therefore, assessed the entire share income, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. On being moved by an application dt. 10th April, 1964 recorded under s.171(3), ITO also noticed that in the said partition an amount of Rs. 15,000 had been kept in reserve (out of Karta Jai Parkash'' assets and dues in the said firm) for each of the three daughter's marriages. 8. Assessee's wife Krishna Kumari died on 7th Sept., 1967 and her separate share in the investments in the three firms, as aforesaid, devolved in six equal shares on Jai Parkash, his two sons (still minors), minor daughter Rekha Kumari and daughters Indu Kumari and Bina Kumari. 9. Another memorandum dt. 1st Dec., 1968 was drawn up showing that Indu Kumari and Bina Kumari relinquished their shares in the estate of their mother Krishna Kumari and thus Krishna Kum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proposition. 13. The share of partner Shri Jai Prakash was 1/5th, 16th, and 1/4th respectively in the profits of the firm (i) Musadi Mal Fatch Chand, (ii) Prakash Engineering Works, and (iii) Narinder Metal Industries. Assuming that Shri Jai Parkash collected from the said three firms the full amounts apportioned to him under s. 158, IT Act, by the ITO assessing the said three firm for the asst. yr. 1971-72, a question arises whether those amounts were wholly party of his income. The decision of that question would in true depend on whether an overriding title in respect of the said receipts or amount had been in the instant case created either by the act of the parties or by operation of law. It is not disputed before us that if such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent to which or the exact portion of the share income (from the three firms) that is assessable in the hands of individual Jai Parkash and do not have that much importance as regards the question of creation of over-riding title of others to portions of the said share income. In these circumstances, we have no hesitation in finding it that an over-riding title had been created in the instant case by operation of the principles of Hindu Law (as to partition of Joint family property. Law of interest succession to estates of females) as also by acts of the parties i.e. partial partition effected on 31st March, 1964 and relinquishment of their shares by Indu Kumari and Bina Kumari in the estate of their mother Krishna Kumari. 15. We therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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