RAJENDRA LAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 66 of the Indian Income-tax Act, 1922. Rajendra Lal is the assessee. He has been assessed as an individual. He is the son of Sir Shadi Lal. The assessement year is 1961-62. The relevant accounting period ended on March 31, 1961.

(2.) CERTAIN shares worth Rs. 2,20,000 belonged to the joint Hindu family consisting of Sir Shadi Lal and his sons. There was a partial partition in the family on August 18, 1959. The shares worth Rs. 2,20,000 were divided among the different members of the family as follows : <FRM>JUDGEMENT_803_ITR78_1970Html1.htm</FRM>

(3.) IN 1959 Rajendra Lal and Narendra Lal were, the two coparceners, who were entitled to receive shares in the property worth Rs. 2,20,000. Each of the two brothers was entitled to a share worth Rs. 1,10,000. But the two brothers decided to allot certain shares to other members of the family. According to that plan, a sum of Rs, 1,00,000 was allotted to Smt. Sushila Devi from the total share of Rs. 1,10,000, to which Rajendra Lal was entitled under the partition. This was an indirect transfer by Rajendra Lal in favour of his wife of assets worth Rs. 1,00,000.