COMMISSIONER OF INCOME-TAX Vs. BHAGAT SINGH

JUDGEMENT

(1.) AT the instance of the Commissioner of Income-tax (Central), Ludhiana, the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal"), has referred the following two questions of law to this court for its opinion : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the assessee reverted back to the status of a Hindu undivided family with the birth of a daughter after partial partition was effected on April 1, 1971, amongst coparceners including his wife, in respect of capital he got on partial partition ?

(2.) WHETHER , on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that income from dividends, interest from banks and annuity refunds belonged to the Hindu undivided family and could not be subjected to tax in the assessee's hands as individual ?" 2. The facts relevant to the questions referred to us are :

(3.) THE Tribunal accepted the contention raised by the assessee and allowed the appeal. After noticing a number of judgments of various courts it was held that what was received by the assessee on partition was a part of joint Hindu family property and by the subsequent birth of a daughter to the assessee after partial partition the income received by the assessee in respect of dividend, interest from banks and annuity refund belonged to the Hindu undivided family which could not be taxed in the hands of the assessee as an individual.