COMMISSIONER OF INCOME TAX-V Vs. BHAWANI SINGHJI

JUDGEMENT

(1.) The common questions of law, which arise for consideration in all these connected gift tax references, wealth tax references, income tax references and income tax appeals are as follows:

(2.) Counsel for all the parties unanimously agreed that the questions be treated as the only ones requiring determination; they were heard on the paperbook and other materials by treating GTA 2/1981 as the lead case.

(3.) Sawai Man Singh, a former ruler of Jaipur, was adopted on 24-03- 1921; he ascended the throne ("Gaddi") of the erstwhile princely state of Jaipur on 7-09-1922. He ruled the Jaipur State as the Maharaja of Jaipur till 1947. With India's independence, British Paramountcy lapsed. The State of Jaipur acceded to India by instrument of accession; the erstwhile state thereafter merged in the United State of Rajasthan on 30-3-1949. The covenant, dated 6-12-1949 with the Government of India recognised the terms of accession under the terms of accession/covenants. The properties of Jaipur State, of which Sawai Man Singh was an absolute owner up to the merger, were divided into two categories: State properties and private properties. Till assessment year (A.Y.) 1969-70, the late Sawai Man Singh filed his returns of income in the status of an individual. For the A.Y. 1970- 71, a return of income was filed on 30-4-1970 in the status of an individual. Sawai Man Singh died on 24-6-1970.