SAVITRI DEVI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE, are two references under Section 27(1) of the Wealth-tax Act made by the Income-tax Appellate Tribunal, Patna Bench, on the following question of Jaw :

(2.) THE facts stated in the statement of the case are these. Shri Mahabir Prasad Poddar and his three sons, named, Atmaram Poddar, Ramautar Poddar and Gopilal Poddar, constituted a Hindu undivided family. THE assessee is the widow of Sri Atmaram Poddar who died on January 8, 1953, leaving behind him the assessee, a son and a daughter. THE son also died on February 2, 1955. On October 14, 1955, a partition took place in the Hindu undivided family, the head of which was Mahabir Prasad Poddar. THE assessee got one-fourth share which was invested in the firm, M/s. Sheonandarai Gajanand, wherein she became a partner. On October 3, 1957, the assessee adopted one Sri Pawan Kumar Poddar as her son. THE deed of adoption was executed and registered on August 11, 1964. THE assessment years in question in these two references are 1964-65 and 1965-66, the corresponding valuation dates being October 26, 1963, and October 15, 1965, respectively. THE assessee's stand before the Wealth-tax Officer was that as a result of this adoption a Hindu undivided family was formed between herself and the adopted son and hence she should be assessed in the status of a Hindu undivided family for the purpose of wealth-tax assessment. THE Wealth-tax Officer came to the following conclusions:

(3.) IT would be seen under the new Hindu Adoption Act that even an unmarried female can adopt. In such a case the adoption would be to her only. But the widow does not cease to be the wife of her deceased husband merely by death. The adopted child becomes the child of her husband also. In the case of Smt. Sitabai, Ramaswami J., delivering the judgment on behalf of the court, has pointed out in paragraph 6 at page 347: