COMMISSIONER OF INCOME TAX Vs. SHANTI MEATTLE SMT

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Delhi Bench A ", at the instance of the Commissioner of Income-tax, U.P. II, Lucknow, referred the following questions of law for our decision for the assessment years 1955-56, 1956-57, 1957-58 and 1958-59:

(2.) THE facts necessary for the decision of these questions may now be shortly stated. Shrimati Shanti Meattle, the assessee, was being assessed as an individual in respect of income from property, interest from bank and other sources. It appears that the relations between her and her husband were not cordial and resulted in frequent quarrels. THE husband and the wife in order to avoid deterioration of their relations agreed to live apart and an agreement for separation was executed between the parties on the 16th day of September, 1954. Under Clause (1) of that agreement, the assessee was given the option to live separate from her husband free from marital control and authority of the husband. Clause (2) thereof contained an agreement that neither the wife nor the husband shall molest or interfere with the other or bring a suit for the restitution of conjugal rights against the other. Clause (4) of the deed insured payment of an amount of Rs. 2,000 per month to the assessee for maintenance of herself and her two children till the assessee did not remarry and continued to perform the other terms and conditions of the deed. THE parties consented to the appointment of an arbitrator in respect of any dispute between the parties, and made the award binding on them. THE assessee received various amounts from her husband as maintenance during the year in question. THE Income-tax Officer took the view that inasmuch as the amounts were being received regularly and were based on the agreement dated September 16, 1954, which was an enforceable contract, the income was taxable in her hands,

(3.) THE first question is of some complexity. THE assessee along with her two children had started living separately from her husband. THE situation on the recitals contained in the deed was brought about on account of unhappy relations between the parties resulting in frequent quarrels. THE deed of separation was executed in order to prevent further deterioration in relations between the parties. Not only did it have the result of permitting the wife to live apart, but denied the husband access to the wife and also prevented him from filing a suit for restitution of conjugal rights. THE wife as a result of the deed was removed completely from marital control and authority of the husband.