Law: Income Tax Act, 1961

Section: 280D

Section 2(24), read with section 280D of the Income-tax Act, 1961 - Income - Definition of - Assessment years 1969-70 and 1970-71 Annuity payments which are a creature of statute and statutory powers, are income in the hands of the nominee, legal representatives of the original depositor. CASE REVIEW CIT v. Hukumchand Mohanlal [1971] 82 ITR 624 (SC) distinguished. CASES REFERRED TO CIT v. Kunwar Trivikram Narain Singh [1965] 57 ITR 29 (SC), IRC v. Wesleyan and General Assurance Society [1948] 16 ITR (Supp) 101 (HL), Kameshwar Singh v. State of Bihar [1959] 37 ITR 388 (SC), Perrin v. Dickson [1929] 14 TC 608 (CA), Scoble v. Secretary of State for India [1902] 9 ITR (Supp) 73 (CA) and Williamson v. Ough [1936] 4 ITR (Eng Cas) 1 (HL). JUDGMENT B.J. Divan, C.J. - In this reference at the instance of the revenue the following question has been referred to us for our opinion: "Whether, on the facts and in the circumstances of the case, the instalment of annuity deposit received by the karta of the assessee as nominee/legal representative of the deceased depositor was liable to be assessed as income of the assessee ?" The relevant assessment years are 1969-70 and 1970-71. The assessee herein is the heir and legal representative and nominee of one Subhadraben K. Nawab who was the original depositor of certain amounts under the Annuity Deposit Scheme set out in Chapter XXII-A of the Income-tax Act, 1961. Subhadraben, the Original depositor, had made a nomination in the regular form under the Scheme in favour of the assessee and by her will, she had bequeathed the right to receive the annual instalments in respect of the relevant annuity deposit certificates to the assessee. For the year of account relevant to the assessment year 1969-70, an amount of Rs. 4,800 was received by way of instalments and for the year of account r elevant to the assessment year 1970-71, an amount of Rs. 3,306 was received by the assessee as instalments in respect of these different annuity deposit certificates. The assessee contended that these two amounts did not constitute his income and should be treated as receipt of capital by him. His contention before the income-tax authorities and at…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492