COMMISSIONER OF INCOME TAX Vs. MOHANLAL CHORDIA

JUDGEMENT

(1.) THIS appeal has been preferred by the Income-tax Officer, IV Circle, Madras, against the order of the Appellate Assistant Commissioner modifying the assessment made in this case. The appellant assessed the respondent as a Hindu undivided family and directed him to pay a tax of Rs. 54,990-9-0 on an income of Rs. 1,75,358. The Appellate Assistant Commissioner found the income to be Rs. 1,06,370 on the grounds which shall be considered in the other appeal against quantum of income preferred by the respondent of this appeal. The other appeal is R.A.A. No. 29 Madras of 1941-42.

(2.) THE admitted facts of the case will be clear by the following pedigree which will show is sought to be assessed in his hands. THE respondent is an an Oswal Jain :- <FRM>JUDGEMENT_352_ITR11_1943Html1.htm</FRM>

(3.) QUESTION (ii) :- Absolute and divesting of estate by adoption : It is true that a sonless Jain widow succeeds to the property of her husband and takes the property absolutely. This is the variation from the ordinary Hindu Law which has been established by many decided cases. The second question which arises is to the effect of adoption and whether there was divesting of the estate or whether the widow continued to be the absolute owner of the property. The question has been dealt with partly in answer to the first argument that the ordinary Hindu Law will be held applicable to the case of Jains. But there is some distinction with regard to this point between the ordinary Hindu Law and the Jain Law, if we may use that expression. In the ordinary Hindu Law a widow acquires only a limited or a life interest, as it is called, in the property of her husband. The case is, however, different in the case of sonless Jain widows. They take an absolute interest in the property left by their husbands. The adopted son, however, divests the adoptive mother of the properties held hitherto by her even as absolute owner. This matter has been the subject-matter of judicial decision and we will merely quote some of the cases without discussing further.