COMMISSIONER OF EXPENDITURE TAX GUJARAT IN BOTH APPEALS Vs. DARSHAN SURENDRA PAREKH IN BOTH THE APPEALS

JUDGEMENT

(1.) One Surendra had by his wife Rameshchandrika (who died in 1947) three children -Darshan, Ranna and Rajeshri. By his second wife Pratima he had two sons and one daughter. Surendra, his wife Pratima and his children formed a Hindu undivided family. Surendra executed three deeds settling certain assets belonging to the Hindu undivided family in favour of his children Darshan, Ranna and Rajeshri, and appointed trustees to manage the assets and to collect the income arising therefrom. The three children also owned some property which they had inherited from their mother. Separate books of account were maintained in respect of the two sets of properties and come received therefrom. Surendra was also possessed of separate property. Expenditure for the education of the three children was it appears defrayed out of the income received from the trust estates.

(2.) In a proceeding for assessment of tax under the Expenditure-tax Act, 1957, of the Hindu undivided family for the assessment year 1958-59 the Expenditure Tax Officer brought to tax Rs. 20,508/- being the aggregate of the following heads of expenditure less the basic allowance of Rs. 30,000/-.

(3.) The Tribunal referred to the High Court of Gujarat under S. 25 (1) of the Act three questions, out of which only two survive for consideration: