BHAGWANT SINGH S Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 66 of the Indian Income Tax Act.

(2.) SIR Sobha Singh and his four sons S. Bhagwant Singh, S. Khushwant Singh. Major Gurbakhsh Singh and S. Daljit Singh were members of a Hindu undivided family up to 31-3-1947 when by mutual consent they became divided in status inter se and agreed to divide their joint family properties. As the total assets of the Hindu undivided family valued at Rs. 45,36,756/- and as the debts outstanding against the said Hindu undivided family aggregated to Rs. 1,7,32,391/11/6 and as the net value after deducting the total liabilities from the total assets was Rs. 28,04,364/- it was agreed that SIR Sobha Singh shall be separate owner of property of the value of Rs. 5,64,364/-and that each of his four sons shall be separate owner of property of the value of Rs. 5,60,000/-. The property which fell to the share of S. Bhagwant Singh was as follows :

(3.) THE circumstances in which the property known as 7 Prithviraj Road (valued at Rs. 1,40,000/-in the partition deed) is alleged to have been given to S. Bhagwant Singh, may now be stated. THEse circumstances appear in a letter dated the 30th April 1953 which was addressed by Sir Sobha Singh to the Income Tax Officer during the course of the assessment proceedings. THE letter is in the following terms :