SARASWATHI AMMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS case concerns the assessments to income-tax made on a family group. The group consisted of a widow and her four sons. they were legatees under a will. the testator was one Perianna Pillai. He was a bus operator. He bequeathed his business to his widow and four sons. The widow took charges of the operation of bus service during minority of her sons. The present reference, however, relate to a period of time when three of the sons had already attained majority. As of this period, the ITO treated the widow, her three adult sons, and the minor son, as an association of persons (AOP), and charged to tax the income from the transport business in their hands as a single unit of assessment.

(2.) THE assessee appealed against the assessments. THEy contended that as legatees under the will of Perianna Pillai, they were tenants-in-common, each entitled to an equal and separate share in the transport business bequeathed to them. It was urged that, in consequence, each legatee had to be assessed separately in respect of his, or her, individual share of income from the business. THE AAC rejected this contention, and confirmed the assessments made in the status of an AOP.

(3.) IN a recent reported decision of this court in CIT v. Madras INdustrial INvestment Corporation Ltd. [1980] 124 ITR 454, the Supreme Court's ruling in Hukumchand's case [1967] 63 ITR 232, was referred to, and the legal position was summed up in the following terms (p. 463) :