Judgement

Appeal (No. 33 of 1944), by special leave, from a judgment and order of the High Court (September 15, 1941) on a reference by the Commissioner of Income-tax, Madras, on the requisition of the appellant, under s. 66, sub-s. 2, of the Indian Income-tax Act, 1922, of the following question of law,

Law. Rep. 72 Ind. App. 141 ( 1944- 1945) Maharajah of Pithapuram v. Commnr. of Income-Tax, Madras 32

namely — "Whether the income of the year 1938-39 derived from the assets comprised in the revocable instruments of trust and settlement executed by the petitioner in favour of his four daughters on April 5, 1933, i.e., before the commencement of the Indian Income-tax (Amendment) Act, VII. of 1939, can be deemed to be income of the petitioner under revocable transfers of assets as contemplated by cl. (c) of sub-s.1 of s. 16 of the Indian Income-tax Act, XI of 1922, as amended by the Indian Income-tax (Amendment) Act, VII of 1939."

The High Court (Leach C.J., Wadsworth and Patanjali Sastri JJ.) answered the question referred in the affirmative.

The following facts are taken from the judgment of the Judicial Committee For the year 1939- 1940 the appellant was assessed to income-tax on