The total income was ascertained at a sum of O. S. Rs.
Under the firman each of the four heirs became entitled to 1/4 share in the estate.
This appeal has been filed by certificate issued by the High Court against the said order of the High Court.
The Deputy Commissioner allowed the third objection, but rejected the first two.
Indeed, after the brothers succeeded to the estate, they were filing separate returns of their income under the Hyderabad Income tax act and each one of them was individually assessed thereunder.
For the assessment year 1359 Fasli, Raja Ratan Gopal filed a return under the Hyderabad Agricultural Income tax Act, 1950 XIII of 1950 , hereinafter called the Act, in respect of his share of the income of O. S. Rs.
20,426 from the estate.
During that period each of the heirs was being given 1/4 share of the income of the estate.
The following genealogy will be useful to appreciate the companytentions raised by the parties.
The estate was under the superintendence of the Nizam Government till the year 1950 when it was handed over to Raja Ratan Gopal with effect from May 1, 1950.
The agricultural Income tax Officer rejected the return and assessed him to tax on the total income of four companysharers on the basis of association of persons.
Against the said order the respondent filed a revision before the companymissioner of Against the said order the respondent field a revision before the Commissioner of Agricultural Income tax, but that was dismissed.
Learned Additional Solicitor General companytested the Correctness of the said two answers given by the High Court.
47,574 been expenditure for the place maintenance and other buildings of the estate is number liable to be deducted as admissible expenditure under clause a or clause b of the sub section 5 of the section 14 of the Hyderabad income tax Act, 1357 Fasil, as expenditure number being private or personal but incurred in companynection with the administration of the estate or expenditure companypulsory under the law.
On may 9, 1950, the Secretary to the Board of Revenue wrote a letter to Raja Ratan Gopal informing his that the four brothers were declared heirs to the estate and they were entitled to the same.
Maharaja Sir Kishen Pershad d. in 1940 Khaja Pershad Sultan Kunwar Bibi Kishen Kunwar d. 25 12 1943 Bibi Raja Ratan Gopal Raja Prem Gopal Raja Chamanlal Raja Narenderlal After the death of Maharaja Kishan Pershad in 1940, his son, Raja Khaja Pershad, succeeded to his estate and he died on December 25, 1943.
After the abolition of the Jagirs, it appears from the certificate of the jagir administrator that the companymutation amount was paid to all the four as equal shareholders in the estate.
The High Court gave the following two answers to the questions referred to it i the income of the assessee has to be assessed for the purpose of the Act on his 1/4 share of the income for the estate after deducting the allowables and 2 the assessee in entitled to deductions under section 6 e of the Act and the same should be companyputed at the time of making an assessment.
The respondent preferred an appeal against that assessment to the Deputy Commissioner of Agricultural Income tax on three grounds, namely, 1 he should number have been assessed on the basis of association of persons but only on his individual income ii he should have been allowed a deduction of expenditure incurred on maintenance of palace buildings and other buildings of the estate, and iii he should have been allowed a deduction of the amounts paid to dependents under the terms of the will of the late Maharaja.
After the Commissioner stated the case, a Division Bench of the High companyrt disposed of the same by its order dated on December 13, 1960.
Under that firman, Raja Ratan Gopal, Raja prem Gopal, Raja Chamanlal and Raja Narenderlal, the sons of two sisters of Raja Khaja Pershad, were declared to be his heirs and entitled to succeed to his estate.
The respondent thereupon preferred a revision to the High Court of Hyderabad under section 26 3 of the Act.
On the recommendation of a special companymission appointed to ascertain the heirs of Raja Khaja Pershad, His Exalted Highness the Nizam of Hyderabad issued a firman dated December 12, 1948.
Subba Rao, J. This appeal by certificate is directed against the judgment of the High Court of Judicature of Andhra Pradesh and raises the within the meaning of the Hyderabad Agricultural Income tax Act, 1950 XIII of 1950 .
After the formation of the Andhra Pradesh High Court, the said companyrt directed the Commissioner to submit the following two question for its opinion 1 Whether in the circumstances of the case of the income of the state can be assessed on the unitary basis as the income of an association of individuals or whether the income of the assessee has to be assessed for the purpose of agricultural income tax at 1/4th of the income of the state after deducting of the allowables, and 2 whether the items of expenditure of Rs.
3,75,218 and the respondent was assessed to a tax of O.S. Rs.
86,263.
