TaxTMI 
TaxTMI 
1954 (4) TMI 1
X X X X Extracts X X X X
X X X X Extracts X X X X
....u undivided family consisting of one (1) Ramjibhai, (2) his son, Ratilal Nathalal---the respondent before us, (3) Ramjibhai's wife, Kamlawanti, (4) Ratilal's wife, Kantabai, and (5) Ramjibhai's unmarried daughter, Pushpa. On the 27th July, 1933, Ramjibhai and Ratilal, who were the sole co-parceners, at the time, of the said Hindu undivided family, executed a trust deed in respect of four items of house property belonging to the joint family, which owned at the time and continued to own other properties also. The effect of the trust deed was that the income of the property settled on trust was to be enjoyed by Ramjibhai during his lifetime, and that after his death the said income was to be enjoyed by the respondent, Ratilal, alone, with a r....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... revocable if it contains any provision for the retransfer directly or indirectly of the income or assets to the settlor, disponer or transferor, or in any way gives the settlor, disponer or transferor a right to reassume power directly or indirectly over the income or assets : Provided further that the expression 'settlement or disposition' shall for the purposes of this clause include any disposition, trust, covenant, agreement, or arrangement, and the expression "settlor or disponer" in relation to a settlement or disposition shall include any person by whom the settlement or disposition was made : ........................... ....................................................." It is by virtue of this clause and in view of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....come-tax authorities were inclined to hold, but that the settlement was by two individual male members of the family, viz., Ramjibhai and Ratilal; and (2) that, in any case, the income in the hands of Ratilal was his individual income and not the joint family income. On the first point, the learned Judges held against the assessee's contention. In their view the two individuals, Ramjibhai and Ratilal, executed the trust deed not in their individual capacity but as the sole co-parceners of the Hindu undivided family and as representing the said family. On the second point, however, they held in favour of the assessee and against the Commissioner. This appeal has accordingly been brought by the Commissioner of Income-tax against that decision....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rising to any person by virtue of a revocable transfer of assets shall be deemed to be the income of the transferor. The first proviso to Section 16(1)(c) enacts that a settlement shall be deemed to be revocable if it contains any provision for the retransfer directly or indirectly of the income or assets to the settlor. The second proviso enacts that the expression "settlor" in relation to a settlement shall include any person by whom the settlement or disposition was made. It is, therefore, urged that by virtue of the second proviso, Ratilal, though only one of the two persons who executed the settlement deed, is the "settlor", and that the provision in the trust deed that the income was to be enjoyed by Ratilal after the death of Ramjibh....