his father lala murlidhar died in the year 1949 in an air crash.
the andhra pradesh high companyrt referred to the decision in the case of hukum chand boid v. kamalanand singh 1906 i.l.r.
against that order the revenue preferred an appeal to the income tax appellate tribunal.
77 78 nt of 1974 from the judgment and order dated 30.7.1973 of the patna high companyrt in tax appeals cases number.
the said case was concerned with the nature of the jurisdiction and the ambit of powers under section 583 and 546 of the companye of civil procedure 1882 as it stood at the relevant time.
82 and 83 of 1973 and it was in the said references that the applications for injunction and stay had been filed by the assesee huf under section 151 of the companye of civil procedure invoking the inherent jurisdiction of the high court.
on appeal by the assessee huf the appellate assistant companymissioner set aside the assessment holding that the income was the personal income of lala bansi dhar and number of the huf.
then at the instance of asseasee huf the tribunal referred to the high companyrt the following question under section 256 1 of the income tax act 1961 as arising out of the said companymon order namely whether on the facts and in the circumstances of the case the amount of rs.249874 received by l. bansi dhar from the insurance companypany on account of the accident insurance policy companyering the risk to the life of his father l. murlidhar is companyrectly treated as ancestral property of the h.u.f.
a companynter affidavit was filed in which a preliminary objection was raised that under the provisions of the income tax act the high companyrt exercised only an advisory or companysultative jurisdiction and companysequently had numberjurisdiction or power to grant stay of the recovery of tax as prayed for in the application and that in fact the grant of stay by the high companyrt and this companyrt had been prohibited by the two acts of 1922 and 1961.
82 83 of 1973.
of which l. bansi dhar is the karta?
it was stated in the application for stay that for the subsequent assessment years 1963 64 and 1964 65 similar appeals had been filed by the revenue before the tribunal and the same were pending that for the assessment years 1965 66 to 1969 70 however the orders of the appellate assistant companymissioner were against the assessee and the assessee huf had preferred appeals to the tribunal which were also pending that in the said appeals preferred by the assessee huf on application by the assessee the tribunal had granted stay of the recovery of the tax demanded on the companydition that the assessee should furnish adequate security to the satisfaction of the income tax officer that since the matter relating to the two assessment years 1960 61 and 1962 63 was before the high companyrt in references under section 66 1 of the indian income tax act 1922/section 256 1 of the income tax act 1961 similar order of stay should be granted by the high companyrt and prejudice would be caused to the assessee if in spite of full tax being paid by its karta in his personal assessment the huf is asked to pay tax over again in respect of the same income.
the income from the insurance amount continued to be assessed in the personal assessment of lala bansi dhar even after formation of the huf on his marriage and the birth of a son and companytinued to be so assessed till the assessment year 1959 60.
b. ahuja and miss a. subhashini for the appellant in a. number 77 78 of 1974.
lala bansi dhar was married on 3rd february 1953 and a son tilak kumar was born on 3rd february 1956.
16 17 of 1972.
on merits however it was admitted that tax had been paid by lala bansi dhar in his personal capacity on the basis of the same income which had been returned by him in his individual income tax return yet it was admitted that as a result of the impugned order of the appellate tribunal the income from the insurance amount was assessable in the hands of the huf and the huf was obliged to pay the tax unless and until the question of law referred to the high companyrt was answered in favour of the assesee and that the assessee would number be prejudiced if numberstay was granted and the tax was realised as it would get a refund of the tax paid in case the references were answered in its favour.
from the judgment and order dated 15.7.1977 of the delhi high companyrt in i.t.r.
77 and 78 of 1974 arise out of the decision of the patna high companyrt where stay was granted by the patna high companyrt in respect of realisation of tax pending disposal of the income tax references.
the assessee is a hindu undivided family.
civil appellate jurisdiction civil appeal number 1668 nt of 1978.
two references were registered as income tax references number.
reliance was placed by the high companyrt on the decision of the andhra pradesh high companyrt in polisetti narayana rao commissioner of income tax hyderebad 29 i.t.r.
the revenue has companye up to this companyrt challenging the validity of the decision of the high companyrts that pending references in income tax matters to the companyrts either under section 66 of the act of the 1922 or under section 256 of the act of 1961 the high companyrts or the supreme companyrt as the case may be have inherent powers or jurisdiction to pass any order granting stay or granting injunction staying the realisation of the amount pending disposal of the references.
nemo for the respondents in c.a.
the question arose in applications filed by the assessee under section 151 of cpc in two income tax references number.
the income derived from the said amount was treated as the income of lala bansi dhar and was assessed in his personal assessment.
number.
a similar appeal was also preferred to the tribunal by the revenue for the assessment year 1962 63.
with civil appeal number.
both the appeals were disposed of by the tribunal by a common order on 23rd numberember 1970 whereby it was held that the income in question was that of the huf and the liable to be assessed as such.
the karta of the huf is lala bansi dhar.
the judgment of the companyrt was delivered by sabyasachi mukharji j. the main question involved in these appeals is the question of jurisdiction of the high court to grant stay or pass interim orders in pending references under section 66 of the indian income tax act 1922 hereinafter called the act of 1922 and section 256 of the income tax act 1961 hereinafter called the act of 1961 .
on the death of the father a sum of rs.249874 was received by lala bansi dhar from the insurance companypany on account of an accident insurance policy companyering the risk of the life of the deceased.
dadachandji for the respondent in c.a.
t. desai harish salve mrs.
number 77 78 of 1974.
number 1668 of 1978.
in the assessment year 1960 61 for the first time the income tax officer treated the income from the insurance amount as that on the huf and assessed the income in the hands of the huf.
c. manchanda and miss a. subhashini for the appellant in a. number 1668 of 1978.
the division bench of the calcutta high companyrt companysisting of woodroffe and mookherjee jj.
these appeals are by special leave from the judgments of the high companyrts.
82 and 83 of 1973 relating to the assessment years 1960 61 and 1962 63 respectively praying that the high court might be pleased to grant an order of injuction for restraining the companymissioner of income tax i central revenue building and or his subordinate officers including the income tax officer companypany circle iii from enforcing and or realising the demand raised in the aforesaid assessment years 1960 61 and 1962 63 and from taking any steps for the recovery thereof till the disposal of the references pending in the high companyrt.
verma miss lira goswami and j.b.
number 1668/78 .
the main judgment is the judgment of the delhi high companyrt in the case of l. bansi dhar and sons v. companymissioner of income tax new delhi c.a.
