COMMISSIONER OF INCOME TAX Vs. MAHADOO PROSAD SHYAMSUNDER

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, the following question of law has been referred to this court for the assessment year 1978-79 :

(2.) Shortly stated, the facts are that the assessee, Mahadeo Prosad Shyamsunder, Hindu undivided family, was a coparcener of a bigger Hindu undivided family named and styled as Messrs. Ramdas Mahadeo Prosad. The bigger Hindu undivided family named above was owner of various house properties, certain mines and oil mills.

(3.) In the bigger Hindu undivided family, there were mainly two groups, namely, S.S. Swaika Group and G.V. Swaika Group. A difference arose among the members of the two groups as a result of which a partition suit was filed before the Calcutta High Court. The High Court decided the suit on June 12, 1977, in consequence of which each group was allotted certain properties and business belonging to the bigger Hindu undivided family. The assessee claimed deduction of Rs. 1,58,415 being expenses for litigation in respect of the aforementioned suit. The Income-tax Officer negatived the assessee's claim.