1969 (12) TMI 1

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....on July 9, 1934. A. senior died on February 23, 1938, leaving him surviving his two wives, lakshmi Achi and Nachiar Achi, and his son's widow, Umayal Achi. The revenue authorities in Ceylon levied Rs. 2,21,743 as estate duty in respect of the estate of A. junior and Rs. 6,33,601.76 in respect of the estate of A. senior. The levy was challenged by the three widows and the dispute was arried to the judical Committee of the Privy Council. The Board set aside the entire levy. In 1957, the Government of Ceylon deposited in court the duty which was levied together with Rs. 7,97,072 as interest due from the date on which the estate duty was collected. After the death of A. Senior, there were disputes between the three widows, Lakshmi Achi, Nachi....

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....ourt was of the opinion that the assessee's share in the interest attributable to the period ending February 17, 1947, was not taxable, but the share attributable to the period between that date and the date of payment by the Ceylon Government was taxable. Against that decision, with certificate granted by the High Court, the Commissioner of Income-tax has appealed to this court. The assessee has not appealed against the opinion in so far as it was held that the receipt to the extent to which it related to a period subsequent to February 17, 1947, is taxable. In the view of the High Court the amounts paid as estate duty must be deemed in law to have come from the joint family estate and on severance of the joint family status in February, 1....

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....er the death of A. Senior the property was held by the three widows as members of the Hindu undivided family. It is not predicated to a Hindu joint family that there must be a male member in existence. Even after the death of the sole male member, so long as the property which was originally of the joint Hindu family remains in the hands of the widows of the members of the family and is not divided among them, the joint family continues. Payment of the estate duty was doubtless made out of the joint family fund and the interest which accrued due also acquired the character of joint family property when received. The joint family status came to an end only on February 17, 1947. On the severance of the joint status the assessee became entitle....