Law: Income Tax Act, 1922

Section: 66(1)

JUDGMENT This case raises a somewhat interesting question of law. At the instance of the assessee, the Income-tax Appellate Tribunal (Madras Bench) has referred to this court under section 66(1) of the Indian Income-tax Act, 1922, to be referred to hereinafter as the Act, the following questions of law, They are: "(i)Whether a sole male surviving coparcener of the Hindu joint family, his widowed mother and sisters constitute a Hindu undivided family within the meaning of the Income-tax Act ? (ii)Whether the assessment of the income in the hands of the Hindu undivided family was correct ? (iii)Whether the Appellate Assistant Commissioner was entitled to correct the status ?" Sri K. Srinivasan, learned counsel for the assessee, did not press question No. 3 and, therefore, it is not necessary for us to pronounce on the same. The material facts as set out in the statement of the case submitted by the Tribunal are as follows : One Gowli Buddappa and his brother's son, Gowli Buddanna (subsequently adopted as son of the former) were the coparceners of a Hindu undivided family. Till the death of Buddappa, their undivided Hindu family was assessed to income-tax. Gowli Buddappa died on July 9, 1952, leaving behind him his wife, three daughters, his adopted son and his daughter-in-law (wife of Buddanna). The Income-tax Officer, Raichur, assessed the assessee for the assessment year 1951-52 (accounting year ended on November 8, 1960) "as the successor to Buddappa with the status of a Hindu undivided family". The assessee appealed to the Appellate Assistant Commissioner of Income-tax who repelled the contention of the assessee as regards his status. The Appellate Assistant Commissioner also held that the Income-tax Officer had committed a mistake in treating Buddanna as the successor of Buddappa. The assessee being dissatisfied with the order of the Appellate Assistant Commissioner appealed to the Income-tax Tribunal. The Tribunal also rejected his contention but accepted his prayer to refer the afore-mentioned questions of law to this court for its opinion. Under section 3 of the Indian Income-tax Act, the liability to pay tax is charged not only on the income of Hindu…

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