1981 (7) TMI 54

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Annuity Deposit Scheme, repayments of the annuity deposit as and when made shall be deemed to be the income of the depositor and chargeable to tax, to be assessed as such. In this case, one Mrs. E. M. Ebrahim, made certain annuity deposits under the I. T. Act. If repayments had been made to her, they would certainly have been taxed under the deeming provisions of the Act and the Scheme. However,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e depositor. In the present case, since the refund was made not to the depositor but after her death to her legal representatives, the Tribunal held that the principal part of the refund cannot be charged to tax in the assessment of the legal representative as part of his income. It may be observed that there was no dispute about the taxability of the interest portion of the refund, whoever might ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is made to the heir of the deceased depositor. We do not think, however, that this distinction in the facts call for any difference in the principle on which the earlier decision is based, namely, that a refund of principal under the annuity deposit scheme is taxable as deemed income only in the hands of the depositor who made the initial deposit and not in the hands of any other person. The q....