1949 (3) TMI 35

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....ee, the assessee claimed the payment as a permissible allowance under Section 9(1)(iv) of the Indian Income Tax Act. The Tribunal took the view that this was a permissible deduction, and the Commissioner of Income Tax has come before us on a reference. 2. In a very recent decision reported in Prince Khanderao Gaekwar v. Commissioner AIR 1949 Bom 17 we laid down that the test to be applied under Section 9(1)(iv) was whether the property was subject to a valid and legal charge which could be enforced in a Court of law under which the assessee was bound to pay a certain amount recurring annually. Now, in this case it is not disputed that this is an annual charge not being a capital charge and the assessee is bound to pay under a decree of the....

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....w until recent legislation came into force that she had any share in any property belonging to a joint Hindu family. Her only right consisted of receiving maintenance out of the income and property and, therefore, the assessee who is the Hindu undivided family whose income is liable to tax is entirely a different entity from the widow who has no interest in its property or income but is only interested in recovering maintenance cut of it; and therefore it is erroneous to suggest that the charge in favour of the widow is a charge in favour of the assessee himself. 3. Mr. Joshi has relied on a decision of this Court which was delivered before Section 9(1)(iv) was incorporated in the Act, and that is a decision reported in Commissioner of Inc....