COMMISSIONER OF INCOME TAX Vs. GOPALDAS T AGARWAL

JUDGEMENT

(1.) AT the instance of the revenue, the following question has been referred to us for our determination :

(2.) ASSESSEE , Gopaldas Tulsiram, is assessed to income -tax in the status of an individual. By an indenture of trust dated February 2, 1943, created by his father, Tulsiram Devidayal, certain properties were settled upon trust for the benefit of himself, his wife and four sons. During the lifetime of the settlor, the assessee, who is one of the four sons of the settlor, was, under clause 2(c)(ii) of the trust deed, entitled to receive one -tenth of net income from the trust properties. By a declaration made by the assessee on November 8, 1956, he declared that on April 1, 1955, he voluntarily threw his right to have as beneficiary one -tenth of the total income of the trust properties into the common stock of the joint family with the intention of abandoning all separate claims upon the said right and with effect from the said date the right to receive one -tenth of the total income under the said trust formed part and parcel of the joint and undivided Hindu family consisting of himself, his wife and his sons for the above assessment years. In view of the said intention, which was ultimately put on record by the said declaration, he contended that the income receivable by him under the trust cannot be regarded as individual income but was income of the HUF. That contention of the assessee was rejected by the ITO and he included the income receivable under the trust as the individual income of the assessee.

(3.) IT is from these orders of the Tribunal that the above question has been referred to us by the revenue for the four assessment years hereinabove referred to.