Judgment

Bharucha, J.-The following question, referred to the High Court of Delhi under Section 256(1) of the Income-tax Act, 1961, was answered in the affirmative and in favour of the Revenue:

“Whether on the facts and in the circumstances of the case, the Tribu­nal was justified in holding that the refund of annuity of Rs. 12,013/- to the assessee as Executor of the Estate of his late father Padam Shree N.N. Mohan was his income and assessable in his hands as Executor of the estate of the deceased?”

The annuity referred to in the question was a payment under the Annuity Deposit Scheme. The Delhi High Court followed its judgment in an earlier case. the Gujarat High Court had taken a similar view. The High Court of Karnataka and the High Courts at Bombay and Madras have taken the contrary view.

2. The facts, briefly stated, are these : One N. Mohan had deposited the sum of Rs. 1,57,250/- under the Annuity Deposit Scheme framed under Chapter XXII-A of the Income-Tax Act, 1961. The same was refund­able to him in 10 equal instalments of principal and interest under the provisions of Section 280-D of the Act. The said Mohan having died on 15th July, 1969, the instalment of principal and in