Lord Russell of Killowen:-

The appellant appeals from a judgment of the High Court of Judicature at Patna on a reference under S. 66 (2), Income-tax Act, 1922 (hereinafter referred to as the Act). The question for decision may be stated to be whether the appellant is assessable to income-tax and super tax in respect of an annual sum of Rupees 2,40,000 payable to him during his life pursuant to a covenant contained in the indenture hereinafter mentioned. The appellant was the owner of an estate in British India known as the Nine Annas Tekari Raj. He had a daughter who had married a son of Rani Bhubaneshwari Kuar (hereinafter referred to as the Rani). By an indenture, dated 29th March 1930, and made between the appellant of the one part and the Rani of the other part, the appellant conveyed the greater portion of his said estate to the Rani for the valuable consideration therein appearing. The indenture recites among other facts that the appellant was absolute owner of the estate, and that, for the purpose of discharging certain of his debts and of obtaining for himself an adequate income, he had agreed with the Rani for the absolute sale and transfer to her of that portion of his sai