SURJITLAL CHHABDA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

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

(2.) THE question arises upon the following facts : Surjitlal Chhabda, the assessee, has three sources of income. He has a share in the profits of the two firms, M/s Silver Screen Enterprises, Amiritsar and M/s L. M. Chhabda & Sons, Ahemedabad. Some interest accrues to him from banks and he has the income from the property known as "Kathoke Lodge", which is now the subject -matter of the reference. We are concerned in this reference with the asst. yrs. 1957 -58, 1958 -59 and 1959 -60 corresponding to the account years ending December 31, 1956, December 31, 1957 and December 31, 1958. Till the present dispute arose in the asst. year 1957 -58 and the subsequent years the assessee was always assessed in the status of an individual. "Kathoke Lodge" was admitedly the self -acquired property of the assessee, but on 26th January, 1956, the assessee made a certain declaration on affidavit and signed it before a Presidency Magistrate declaring it to be property belonging to an HUF. The relevant declaration was as follows :

(3.) ON the strength of this declaration for the asst. year 1957 -58 onward the assessee claimed that the income from the property should be assessed in the status of an HUF. He contended that he had thrown the property into the common stock or hotchpot of the HUF consisting of himself, his wife and his daughter and of which he was the Karta and had abondoned all claims to hold Kathoke Ladge as a separate property.