DHIRAJLAL GIRDHARLAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred for our decision is :

(2.) WE are concerned with the assessment years 1945 -46 and 1946 -47 and the account years corresponding to these assessment years are the two financial years March 31, 1945, and March 31, 1946. The assessee is a Hindu undivided family which originally consisted of one Girdharlal Trikamlal and his three sons, Dhirajlal, Hiralal and Kirtilal. Girdharlal passed away on 26th July, 1942.

(3.) ON the date of Girdharlal's death there was standing to the credit of his personal account with the partnership firm a sum of Rs. 25,31,999. The firm, therefore, owed him that amount on the date of his death. On his death his widow and the three sons inherited the amount standing to the credit of his personal account in the partnership and in satisfaction of that amount the new firm formed by Dhirajlal and Hiralal transferred shares which the firm owned to the market value of Rs. 18,34,586 from out of a large amount of shares which the firm held of the value of Rs. 23,60,000.