KNIGHTSDALE ESTATES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this application, the assessee requires the Appellate Tribunal to refer to the High Court certain questions of law, which are said to arise out of the Tribunal's order in I. T. A. No. 3197 of 1948 -49, dated 21st November, 1950. Inasmuch as, in our opinion, questions of law do arise out of the aforesaid order, we hereby draw up a statement of the case, agreed to by both parties, and refer it to the High Court of Judicature at Madras under section 66(1) of the Indian Income -tax Act.

(2.) THE assessee is a partnership deriving income as owners of a large tea estate and manufacturers of tea in Ceylon. The estate is known as the Knightsdale Group. The partnership is supported by a deed, dated 22nd March, 1947, (annexed hereto as Annexure A and forming part of the case) among the three persons, namely, (1) S. T. P. Marimuthu Pillai, (2) R. M. S. Marimuthu Pillai and (3) R. M. S. Srinivasan Pillai, all of them residents of Murugur, Tiruchirapalli district. This deed was in substitution of earlier deeds, dated 17th January, 1944, and 14th February, 1947, which were technically defective because in the first, minors were directly shown as partners and in the second, the partners were mentioned as families.

(3.) ALL the said persons are descended from a common ancestor. Mari Kangani, who was the original owner of the tea estates and the estate was inherited by them in accordance with the law of succession obtaining in Ceylon (which like the Roman Dutch Law recognises only individuals and not families.) The tea estates which Mari Kangani acquired and developed were known as the Marieland Group of Estates. By a will, dated 4th April, 1916, the Marieland Group was bequeathed by Mari Kangani to his heirs in definite but undivided shares. The heirs enjoyed these properties jointly, dividing the income on the basis of the shares stipulated in the will.