For the Assessment Year 1970 71 the Income Tax Officer treated the sum of Rs.
12,013/ as income in the hands of the assessee.
The said Mohan having died on 15th July, 1969, the instalment of principal and interest in the sum of Rs.12,013/ payable to him under Section 280 D was paid to the assessee, his son and executor.
The same was refundable to him in 10 equal instalments of principal and interest under the provisions of Section 280 D of the Act.
Therefore, the HUF was partitioned and the assessee received to his share repayments against the annuity deposits.
The High Court of Karnataka and the High Courts at Bombay and Madras have taken the companytrary view.
The Gujarat High Court had taken a similar view.
The assessee had made annuity deposits under the Annuity Deposit Scheme, 1964, on behalf of the HUF.
The facts, briefly stated, are these One N. Mohan had deposited the sum of Rs.1,57,250/ under the Annuity Deposit Scheme framed under Chapter XXII A of the Income Tax Act, 1961.
