1987 (11) TMI 147

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.... assessee had life interest and which the assessee claimed had been surrendered to the remaindermen. The assessee had a life interest in properties No. 20, Vepery High Road, Nos. 67 to 76, Madhavaram High Road and No. 6, V. V. Koil Street, Madras granted to her under a deed of settlement dated 2-4-1945. This life interest was being shown as part of her net wealth and income attributable to these p....

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.... the partition deed had been executed on 27-4-1972 it could not be treated as void. On the other hand, it was submitted don behalf of the revenue that a notice of default had been sent on 17-3-1972 under Rule 2 of the Second Schedule to the Income-Tax Act and in terms of Rule 16, the assessee was not competent to alienate the property and, therefore, the partition deed could not be recognised. We ....

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....t to the transaction have given effect to the transaction and just as the income from it has not been shown by the assessee in her total income, the income from the three properties originally held by her are being shown by the recipients and assessed in their hands. In these circumstances, the transaction has to be accepted as valid and given effect to unless it is specifically avoided under rule....