TaxTMI 
TaxTMI 
2003 (6) TMI 199
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....nised in section 171(9) of the Income-tax Act, 1961. (3) The Commissioner of Income-tax (Appeals) also erred in not holding the so called family arrangement (which deprives the rights of the unmarried minor daughters which rights are conferred on Hindu girls unmarried as on 5-8-1985) is illegal and therefore, invalid. 2. The assessee is a specified HUF consisting of Shri Shankaraiah Yadav, Kartha, his spouse, a son and six daughters. On 9-3-1990, a family arrangement was executed whereby it was mutually agreed and settled that fixed deposits and cash would be set apart and settled in favour of each of the six minor daughters of the Kartha for their maintenance and marriage expenses. These fixed deposits and cash are specified in Annex....
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....s) followed the judgment of the Hon'ble Madras High Court in the case of CIT/CWT/CGT v. S.M.M. Muthappa Chettiar [1997] 223 ITR 515 and allowed the claim of the assessee. This judgment of the Commissioner (Appeals) was common for the assessment years 1991-92 to 1993-94. For the assessment years 1994-95 to 1996-97, the successor Commissioner (Appeals) followed the judgment of her predecessor and allowed the appeals of the assessee. Aggrieved of these, the Revenue is in appeal before us. 4. The learned Departmental Representative filed copies of the family arrangement and drew the attention of the Bench to pages 4, 5 and 6 of that document and argued that this is a partial partition. He filed a copy of page 43 of the Hindu Succession Act, ....
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....ldren or otherwise Shri P. Shankaraiah Yadav shall not utilise the above amounts except for the purpose of education, maintenance and marriage expenses. It is further agreed that the Immovable properties and Agriculture Lands mentioned in Annexure 'A' and remaining movable assets mentioned in Annexure 'B' and any other properties and assets that may be acquired hereinafter shall be and belong to the Joint Family comprised of P. Shankaraiah Yadav and his minor son P. Srinivas Yadav including Smt. P. Kamalamma, wife of P. Shankaraiah Yadav and mother of P. Srinivas Yadav only. The six of the minor daughters shall not have any claims in the said immovable or movable assets as they have been separated from the family and due to allotment ....
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....ction 29A which is applicable to the State of A.P. with effect from 5-9-1985. In the case of S.M.M. Muthappa Chettiar there was written declaration of partial partition whereas in the case on hand it is stated as a family arrangement and the learned counsel for the assessee states that it is not a case of partition at all. In that case it was held that it was a discharge of legal obligation of the assessee family towards daughters while in the case on hand which pertains to the State of A.P. in view of the insertion of section 29A in the Hindu Succession Act, the same reasoning cannot be applied. Family arrangement shows that the balance of the assets continued to be held jointly by Shri P. Shankaraiah Yadav and his minor son Shri P. Sriniv....