TaxTMI 
TaxTMI 
1975 (8) TMI 57
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....13th Nov., 1950. Smt. Amrit Kaur remarried Brig. N.S. Bhagat on11th March, 1956Plot NO. C.520, Defence Colony,New Delhiwas allotted to Smt. Amrit Kaur as a widow of her first husband Brig. Agya Singh on7th Sept., 1953. She took possession of the plot of February, 1957 and started construction in February, 1959 which was completed on October, 1960. She stated that she had spent Rs. 43,000 out of the funds of her first husband and Rs. 30,000 taken as a loan from second husband on the construction of the said property. She was also the guardian of her minor son Shri Dilsher Singh from her first husband. In the return of income for the asst. yr. 1961-62 she stated that the income from the property C-520, Defence colony blonged to her son Dilshe....
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....the asst. yr. 1966-67, the ITO came to a different conclusion. He held that as the property was not transferred by Smt. Amrit Kaur by a registered sale deed to her son Sri Dilsher Singh, she continued to be the owner thereof and the income was consequently assessable in her hands. He also observed that a perusal of the Bank pass book of Smt. Amrit Kaur showed that the rent from this property was being regularly received and credited in her account. The income from this property was also included in the assessee's income for the asst. yrs. 1967-68 to 1971-72. 3. The assessee preferred appeals to the AAC. The appeals were disposed of by the AAC by a consolidated order dt.31st Dec., 1973. The AAC took the view that on her second marriage Sm....
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....he had remarried and the plot was allotted to her as a widow of her first husband. The Regional Settlement Officer allotted the plot to Shri Dilsher Singh. Keeping in view all these facts, the ACC directed the ITO to excluded the income from this property from the total income of the assessee as it was assessable in the hands of Shri Disher Singh for all the assessment years under appeal. The revenue being aggrieved is in appeal before us. 4. On behalf of the Revenue Shri H.S. Gulati submitted that Smt. Amrit Kaur did not inherit the property as the plot in question was allotted to her after the death of first husband Brig. Agya Singh. The Departmental Representative was that Smt. Amrit Kaur constructed a house on this plot and although ....
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.... the house was financed out of those funds. The assessee's learned counsel pointed out that Smt. Amrit Kaur remarried Brig. N.S. Bhagat on11th March, 1956before the Hindu Succession Act, 1956 came into force and therefore she had only limited estate in the property of her late husband. It was submitted that on her remarriage with Brig. N.S. Bhagat on 11th March, 1956 she forfeited all her rights in the property inherited by her from her first husband and the same vested in there son Shri Dilsher Singh from her first husband whose guardian she was during his minority. Reliance was placed on Page 107 of Mulla Hindu Law, 13th Edition and it was contended that no transfer by any registered deed was necessary. It was also submitted that Smt. Amr....
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....s property by way of maintenance, or by inheritance to her husband or to his lineal successors, or by virtue of any will or testamentary disposition conferring upon her, without express permission to remarry, only a limited interest in such property, with no power of alienating the same, shall upon her remarriage cease and determine as if she had then died, and the next heirs of her deceased husband or other persons entitled to the property on her death, shall thereupon succeed to the same." The above section only modifies the Hindu Law on the point that a remarried widow ceases to have any interest in her former husband's property and that the next heir of that husband succeeds to the same. Smt. Amrit Kaur took steps to have the plot in....