Judgement

Appeal (No. 65 of 1946) from a judgment and decree of the High Court (April 18, 1944) delivered and passed on a reference made by the Income Tax Appellate Tribunal under s. 66, sub-s. 1, of the Indian Income-tax Act, 1922, as subsequently amended.

The following facts are taken from the judgment of the Judicial Committee. A Hindu named Tulsi Ram had two sons, Chunilal and Lachhman Das (the appellant). Chunilal had three sons and Lachhman Das

had seven sons, two of whom were named Daulat Ram and Kanhaya Lal. Shortly before his death in 1930 Tulsi Ram made a gift of Rs.30,000 to Daulat Ram. Daulat Ram deposited that sum at interest with the firm of the joint family carried on by Chunilal and Lachhman Das. The family was governed by the Mitakshara law. In or about 1938 a partition took place between Chunilal and his sons on the one hand and Lachhman Das and his sons on the other. Lachhman Das and his sons, however, remained joint. Daulat Ram was repaid his deposit, which, with interest, had increased to Rs.48,000, and that sum he invested in certain mills called the Indian Woollen Textile Mills. It was undisputed that that sum was his separate property. It had been found as a