VINCENT P Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) UNDER Section 66 (1), Income-tax Act the Appellate Tribunal referred to this Court two questions for decision. They are:

(2.) ONE S. Vincent executed a Will on 4-2-1941 and died on 22-4-1942, leaving behind him four sons, two daughters and a widow. Immediately after his death there were disputes regarding the Will between the members of the family and the disputes were ultimately settled by a deed of family arrangement of 7-8-1942. Under this arrangement it was agreed between the members that the entire properties and the business left by the deceased S. Vincent should be managed by the eldest son P. Vincent, and after his, on behalf of all the members of the family, by the then surviving eldest son. The managing member was given complete control over the business belonging to the members for a period of seven years from the date of the deed. At the end of the period, it was provided that the parties should scrutinise the accounts and draw a true and accurate list of all the assets and liabilities and if thereafter they did not wish to continue the business, the properties should be divided so as to give a one-sixth share to each of the four sons and the widow and a one-twelfth to each of the two daughters.