DAYALAN RAJES Vs. STATE OF KERALA

JUDGEMENT

(1.) These Tax Revision cases came up for consideration of the Full Bench along with O.P. Nos. 9468 & 10950/92 and 1893/93 and certain other Tax Revision Cases. Eventhough the questions raised in the Writ Petitions and Revision Cases mentioned above are not exactly me same which are arising in these cases, we heard all the cases together since the interpretation of the provisions of the Kerala Joint Hindu Family System (Abolition) Act, 1975 arises in all these cases.

(2.) The assessee who is domiciled in Tamil Nadu is having properties in Kerala. He was originally assessed to Kerala Agricultural Income Tax on 1.7.1988 for the assessment years 1978-79 and 1979-80. Assessee obtained the property under family partition deeds dated 14.7.1954and 16.10.1956. Assessing Authority took the view that for the year 1978-79, the assessee has to be granted the status of tenants - in - common with his wife and one daughter. This view was taken by the assessing authority on the basis that the Hindu Joint Family consisting of the assessee, his wife and daughter has got disrupted on the Kerala Joint Hindu Family System (Abolition) Act, 1975 coming into force on 1.12.1976. Similar view was taken in respect of the assessment for the year 1979-80 also. Deputy Commissioner, Agrl. Income Tax and Sales Tax, Palghat, in exercise of his power of suo motu revision under S.75 of the Kerala Agricultural Income tax Act, 1991, issued notice on 6.11.1991 calling for objections. The Deputy Commissioner prima facie found that the assessment as tenants - in - common in the case of the assessee was irregular since the Kerala Joint Hindu Family System (Abolition) Act, 1975 has no application to the family of the assessee in Tamil Nadu. Assessee filed his objections on 20.12.1991. He was granted a personal hearing also. He put forward a contention that pursuant to a compromise decree in O.S. 366/80 before the Subordinate Judge, Salem filed by the petitioner's wife and daughters for maintenance, education and marriage expenses, a settlement was arrived at between himself, his wife and two daughters and one son on 20.9.1981. He contended that there is no infirmity in the assessment orders assigning status of tenants - in - common to the assessee, his wife and daughter. The Deputy Commissioner rejected the case put forward by the assessee and came to the conclusion that the Kerala Joint Hindu Family System (Abolition) Act, 1975 has no application to the case of the assessee. Assessment orders for the years 1978-79 and 1979-80 were set aside and the cases were remanded back to the Agrl. Income Tax Officer, Chittur for fresh disposal after proper verification in accordance with law.

(3.) Aggrieved by the order passed by the Dy. Commissioner, assessee filed revision petitions before the Commissioner of Agrl. Income Tax. Before the Commissioner, it was contended by the assessee that the Kerala Joint Hindu Family system (Abolition) Act, 1975 is applicable to the assessee that even if family is reduced to a sole surviving coparcener with the other female members, the property and income belonged to the joint family and as a result of the disruption which was brought about by the Kerala Joint Hindu Family System (Abolition) Act, 1975 in the joint family, the assessee, his wife and daughter are to be treated as tenants in common. It was further contended that since the properties are situate in Kerala, Kerala Joint Hindu Family System (Abolition) Act, 1975 is applicable to the property, income from which is being assessed and therefore the view taken by the Dy. Commissioner is unsustainable.