COMMISSIONER OF INCOME-TAX DELHI AJMER RAJASTHAN AND MADHYA BHARAT Vs. PRATAP CHAND CO BRITISH MOTOR CAR CO 1934 LTD

JUDGEMENT

(1.) ON the application of the Commissioner of Income-tax, the Income-tax Appellate Tribunal (Delhi Branch) has drawn up the case and has referred the following question to this Court under section 66 (1) of the Indian Income-tax Act :

(2.) PARTAP Chand assessee filed two returns for the assessment year 1953-54, one in the status of an individual showing therein his income from salary etc. , and the other as Karta of a Hindu undivided Family consisting of himself and his minor son showing therein income from ancestral property. In this case we are only concerned with his return as Karta of Hindu undivided Family and not with his return as, an individual. The facts relevant for this purpose are these. The assessee's father was Somer Chand. There was a family arrangement between somer Chand and Partap Chand and thereunder Partap Building, Connaught Circus, New Delhi, and some shares were allotted to Partap Chand with effect from 18-4-1946. This family arrangement has been recognised by the Income-tax authorities. The property so allotted to Partap Chand has been held in the p'resent case to be ancestral property in his hands. In 1947, Partap Chand was married under the Special Marriage Act (No. III) of 1873. At the time of marriage Partap Chand made a declaration that he did not profess Hindu religion. His son was born sometime in 1948. On these facts the assessee's case is that he with his minor son constitute a Joint Hindu Family under the Hindu Law while the case of the Income-tax Authorities is that succession to Partap Chand's property, self acquired or ancestral, must be regulated by the provisions of the Succession Act i. e. , by succession and not by survivorship.

(3.) IT was argued on behalf of the Income-tar Commissioner that the assessee, by his declaration at the time of the marriage under the provisions of the Special Marriage Act that he did not profess Hindu religion abjured and renounced the Hindu Law as applicable to him. It is argued that after this declaration he ceased to be a Hindu and 'the succession to his property must be governed by the provisions of the Indian Succession Act, 1925.