Delhi High Court
L. Bansi Dhar & Sons vs Commissioner Of Income Tax on 14 January, 1993
Author: B Kirpal
Bench: A Saharye, B Kirpal
JUDGMENT
B.N. Kirpal, J.
1. Common paper book has been filed in respect of IT Ref. Nos. 199 to 212 of 1979.
In respect of IT Ref. No. 199/1979 for the asst. yr. 1964-65 the following two questions of law have been referred :
"1. Whether, on the facts and in the circumstances of the case, the amount of Rs. 2,49,874 received by L. Bansi Dhar from the insurance company on account of the accident insurance policy covering the risk to the life of his father L. Murlidhar is correctly treated as ancestral of the HUF of which L. Bansi Dhar is the Karta and not the individual property of L. Bansi Dhar ?
2. Whether, on the facts and in the circumstances of the case, dividend income amounting to Rs. 49,800 earned by L. Bansi Dhar from shares of Bharat Ram Charat Ram (P) Ltd., held in the name of L. Bansi Dhar is correctly treated as belonging to the HUF of which L. Bansi Dhar is the Karta and not to the individual L. Bansi Dhar ?"
2. In view of the decision of this Court in Bansi Dhar & Sons vs. CIT (1980) 123 ITR 58 (Del) : TC 37R.389 the said two questions have to be answered in favor of the assessed. Ordered accordingly.
3. IT Ref. Nos. 202 and 208/1979 are in respect of the asst. yrs. 1964-65 and 1970-71 and the following question of law has been referred to this Court.
"Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the dividend on shares of various companies acquired in the name of L. Bansi Dhar's wife and child viz., Urmila/Tilak Kumar and also the income from interest on deposit made in their names could not be included in the incomes of the assessed joint families ?"
In view of the decision of this Court in (1980) 123 ITR 58 (Del) (supra) the said question of law is answered in favor of the assessed.
4. IT Ref. Nos. 203 to 207 of 1979 pertain to asst. yr. 1965-66 to 1969-70 and following two questions of law have been referred to this Court :
"1. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the dividend on shares of various companies acquired in the name of L. Bansi Dhar's wife and child viz., Urmila/Tilak Kumar and also the income from interest on deposit made in their names could not be included in the incomes of the assessed joint families ?
2. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the interest paid by the assessed on moneys borrowed for making annuity deposit is an item of expenditure deductible from the assessed's income for the asst. yrs. 1965-66 to 1969-70 ?"
Question No. 1 has to be answered in favor of the assessed in view of the decision of this Court in (1980) 123 ITR 58 (Del) (supra) while it is agreed that question No. 2 has also to be answered in favor of the assessed because a similar question was answered in favor of the assessed in the case of CIT vs. Vinay Bharat Ram (1981) 129 ITR 128 (Del) : TC 41R.499. Ordered accordingly.
5. IT Ref. Nos. 200 and 201/1979 pertain to the asst. yrs. 1963-64 and 1964-65 and the following two questions of law have been referred to this Court :
"1. Whether, on the facts and in the circumstances of the case, the amount of Rs. 2,49,874 received by L. Shri Dhar from the insurance company on account of the accident insurance policy covering the risk to the life of his father L. Murlidhar is correctly treated as ancestral property of the HUF of which L Shri Dhar is the Karta and not the individual property of L. Shri Dhar ?
2. Whether, on the facts and in the circumstances of the case, the dividend income amounting to Rs. 14,350 and Rs. 10,500 earned by L. Shri Dhar from shares of Bharat Ram Charat Ram (P) Ltd. held in the name of L. Shri Dhar is correctly treated as belonging to the HUF of which L. Shri Dhar is the Karta and not to the individual L. Shri Dhar ?"
In view of the decision of this Court in (1980) 123 ITR 58 (Del) (supra) these two questions of law are answered in favor of the assessed.
6. IT Ref. Nos. 209 and 211/1979 are in respect of asst. yrs. 1963-64 and 1964-65 and the following question of law has been referred to this Court :
"Whether, on the facts and in the circumstances of the case the Tribunal was legally correct in holding that 308 shares of M/s Madan Mohan Lal Shri Ram (P) Ltd. belonged to L. Shri Dhar in his individual capacity and not to the assessed's joint family and directing that dividend income from these shares be excluded from the assessment of the assessed joint family for the asst. yr. 1963-64 and 1964-65 ?"
7. In an identical case of L. Bansi Dhar & Sons. vs. CIT in IT Ref. No. 18/92, decided on 2nd November, 1992 [reported at TC 37R.654], similar question of law has been decided in favor of the Department and in this case also the question of law is answered in favor of the Department.
8. IT Ref. Nos. 210 and 212/1979 are in respect of asst. yr. 1963-64 and 1964-65 and the following question of law has been referred to this Court :
"Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that dividend on shares of various companies acquired in the name of L. Shri Dhar's wife and children viz., Smt. Prabha/Ajay/Anuradha and also the income from interest on deposit made in their names could not be included in the income of the assessed joint family ?"
The facts of these cases are identical to that of Bansi Dhar & Sons vs. CIT (supra) and in view thereof the question of law is answered in favor of the assessed.
9. There will be no order as to costs.
