COMMISSIONER OF INCOME TAX Vs. V RAJKUMAR

JUDGEMENT

(1.) AT the instance of the Department, the Income-tax Appellate Tribunal has stated a case and referred the following question of law under section 256(1) of the Income-tax Act, 1961, for our opinion :

(2.) THERE was a joint Hindu undivided family consisting of two coparceners, namely one A. M. Vaiyapuri Chettiar and his son V. Rajkumar. THERE was a total partition of the family on April 14, 1971, and the partition was accepted by the Income-tax Officer and he passed an order under section 171 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). On October 1, 1979, Vaiyapuri Chettiar and Rajkumar executed a document called "deed of declaration of reunion" by which, they have reunited constituting a Hindu undivided family. After the reunion, the father and the son brought a fixed deposit of Rs. 50,000 each to the Hindu undivided family and declared that the joint family alone would hold the rights in respect of these assets totalling a sum of Rs. 1,00,000.