COMMISSIONER OF INCOME TAX Vs. BAWA ARJAN SINGH

JUDGEMENT

(1.) The following question has been referred to us by the Income Tax Appellate Tribunal, Delhi Bench " B ", under Section 66(1) of the Indian Income Tax Act, 1922:

(2.) The relevant year of assessment is 1959-60. Bawa Arjan Singh along with his father, Bawa Dinga Singh, and his brtohers, Bawa Gian Singh and Bawa Sunder Singh, constituted a Hindu undivided family. The family was engaged in timber business under the name and style of Spedding Dinga Singh at Lahore. Assessments to Income Tax were being made on the Hindu undivided family. Bawa Dinga Singh died in the year 1939 and on April 30, 1940, there was a partition of the business between the three brtohers. The timber business having been divided, it was carried on subsequently in partnership. The assessed was thereafter being assessed in his individual capacity. Again, on May 1, 1946, the house properties belonging to the family, which had nto been partitioned earlier, were partitioned among the brtohers. This partition was also recognised by the revenue and assessments were, thereafter, made on the assessed as individual. With respect to the assessment years 1957-58, 1958-59 and 1959-60, the assessed filed returns in his individual capacity but later revised the same claiming that he should be assessed in the status of a Hindu undivided family. The family was stated to consist of the assessed, his widowed mtoher, wife and two unmarried daughters. The assessed having lost before the Income Tax Officer and the Appellate Assistant Commissioner preferred an appeal to the Tribunal only in respect of the assessment year 1959-60. The Tribunal held :

(3.) One of the contentions raised by Mr. Kirpal, the learned counsel for the revenue, was that in considering the status of the assessed the widow of Bawa Dinga Singh should be excluded because there was a complete partition in 1940 resulting in severance of all the coparceners and/or members of the family. He said that the question, Therefore, should be answered in the light of the fact that Bawa Arjan Singh's widowed mtoher was nto a member of the family. This aspect does nto appear to have been presented before the Income Tax Appellate Tribunal at all and I must, Therefore, proceed on the finding arrived at by the Tribunal, namely, that Bawa Arjan Singh's mtoher was a member of the family along with him. I will, however, deal with the toher aspect of the case also and determine the status by excluding the widow of Bawa Dinga Singh.