1986 (8) TMI 24

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....e trust was assessable in the hands of the assessee as the income of the assessee ? " The material facts giving rise to this reference, briefly, are as follows: The assessee is assessed in the status of an individual and the assessment year in question is 1971-72, the accounting year for which ended on Diwali, 1970. The assessee and his father had constituted a Hindu undivided family. A partition was effected between the assessee and his father on June 19, 1961, and a memorandum of partition was executed on July 9, 1961. As a result of that partition, the assessee received a sum of Rs. 50,000 as his share. The assessee created a private trust of the whole of the amount which he had received in partition by a registered deed of trust dated....

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....or the Revenue, contended that the assessee had treated the property received by him in partition as his individual property and, hence, the Tribunal was justified in holding that the income of the trust was liable to be assessed in the hands of the assessee. Reliance was placed on the decisions in Surjit Lal Chhabda v. CIT [1975] 101 ITR 776 (SC) and CIT v. Vishnukumar Bhaiya [1983] 142 ITR 357 (MP). The answer to the question referred to this court depends upon the answer to the question as to whether the property, of which the trust was created, was or was not the individual property of the assessee. In N. V. Narendranath v. CWT [1969] 74 ITR 190, the Supreme Court held that when a coparcener having a wife and minor daughters and no son....