He further held that the two minors should be taxed through the Guardians in their individual share of profits at the rate applicable to the individual incomes.
The guardians were thus only liable to pay tax on the amount which they received on behalf of these two minors separately.
V. Viswantha Sastri and D. N. Mukherjee, for the respondents.
V. Gupte, Solicitor General, N. D. Karkhanis, B. R. G. Achar and R. N. Sachthey, for the appellant.
He came to the companyclusion that the very fact that separate guardians for the two minors were appointed by the Court with directions to separately account for their accounts and the expenses clearly establishes that they cannot also form an U.F. By the time this order was passed, the Sub Judge, Nowgong, had passed the order dated March 25, 1958, and it is clear that the Appellate Assistant Commissioner relied on it.
Appeal from the order dated July 4, 1961 of the Assam High Court in Income tax Reference No.
C.I/66 9 Account upto 30th September, 1957 filed.
The Judgment of the Court was delivered by Sikri, J. This appeal in pursuance of a certificate granted under s. 66A 2 of the Indian Income Tax Act, 1922, hereinafter referred to as the Act, is directed against the judgment of the High Court of Assam in a reference made to it under s. 66 2 of the Act.
Heard learned lawyer.
For the assessment year 1954 55, which is the subjectmatter of this reference, a return was filed in the status of a Joint Hindu Family by the two guardians.
For that purpose the total income should be companyputed as it has number been done.
820 of 1964.
The question referred to by the Appellate Tribunal was whether in the circumstances of the case the Tribunal was justified in assessing the income of the minors in the hands of the guardians as the income of a Hindu undivided family.
The Income Tax Officer, by his order dated October 19, 1957, assessed the guardians under s. 23 3 read with s. 41 of the Act.
The guardians are hereby allowed to keep and submit separate accounts henceforward for each of the minors together with accounts of profits and loss and separate expenses of each minor.
By the order of the Court, separate accounts in the name of the two minors were opened in which the receipts and expenses relating to each of the minors were separately adjusted.
Two separate assessments should be made in the names of two minors at the hands of the guardians in the status of individual.
The relevant facts out of which the reference arose are as follows Shri Kishanlal Agarwalla died intestate in December 1950, leaving his widow and two minors, Basanta and Ashok.
He was governed by Mitakshra School of Hindu Law.
The Appellate Assistant Commissioner by his order dated May 16, 1956, set aside the assessment and directed the Income Tax Officer to reassess after obtaining two separate returns from the appellants and to frame two separate individual assessments.
On December 15, 1953, the Sub Judge appointed Shri Dwarka Prasad Agarwalla and Shri Nandlal Agarwalla guardians of the person and properties as per the schedule in the application of Basanta and Ashok.
It appears that on March 25, 1958, the Sub Judge, Nowgong, passed the, following order Sup.
The District Judge, by his order dated June 1, 1953, appointed him temporarily the guardian of the person and properties of Basanta and Ashok, till the disposal of the application, and transferred the file to the Subordinate Judge, L.A.D., Nowgong.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1 of 1961.
On the death of the widow an application was made by Shri Nandlal Agarwalla to the Court of the District Judge, Gauhati, for being appointed as a guardian of the person and the properties of the two minors, Basanta and Ashok.
The widow also died in 1952.
The guardians file petition seaking permission for showing the accounts of the two minors separately.
The guardians filed an appeal before the Appellate Assistant Commissioner companytending that the assessment was bad in law.
Prior to his death he was being assessed as an individual on the income arising from the business carried on in the name of Shri Krishan Rice Mills, Tezpur.
It is number necessary to mention what happened in the assessment years 1951 52, 1952 53 and 1953 54 because numberhing turns on that.
The guardians were directed to render accounts half yearly in the months of March and September each year, i.e. by the 31st March and 30th September, each year until the minors attained majority.
