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HIGH COURT OF CALCUTTA
D. N. Sinha
SUSHILA DEVI RAMPURIA - Appellant
Versus
INCOME TAX OFFICER - Respondent
Matter 216 Of 1958
Decided On : JUNE 11, 1959
INCOME TAX - Assessment - Hindu Undivided Family - Representation by Female - Whether a Hindu female can represent a Hindu undivided family as a manager for the purpose of assessment of income tax.
Fact of the Case:
The petitioner, Sushila Devi Rampuria, was the widow of Bhanwar Lal Rampuria, who died in 1947 leaving behind his widow and two minor sons. The petitioner represented the Hindu undivided family (HUF) consisting of herself and her two minor sons for the purpose of assessment of income tax from the assessment year 1943-44 to 1951-52. The Income Tax Officer (ITO) issued a notice under Section 22(2) and 38 of the Indian Income Tax Act, 1922 (the Act) for the assessment year 1951-52. The petitioner filed a return describing herself as the legal representative of Bhanwar Lal Rampuria, deceased. The ITO issued a notice under Section 22(4) of the Act addressed to "sm. Sushila Devi Rampuria representing the H. U. F. M/s. Hulas Chand Rampuria," asking for production of accounts and documents. The petitioner made an application for time for a fortnight for production of the books. An order of assessment was made on 31st March 1958 in the name of "sm. Sushila Devi Rampuria representing the H. U. F. Bhanwar Lal Rampuria." The petitioner filed an appeal against the assessment order before the Appellate Assistant Commissioner, but did not raise any ground that she could not represent the HUF or that the assessment was made in the wrong name. The petitioner filed an application under Section 35 of the Act for rectification of the assessment order, describing herself as "sm. Sushila Devi Rampuria representing the H. U. F. left by Bhanwa'r Lal Rampuria (deceased)". The assessment order was rectified. The petitioner filed a revision petition under Section 35 of the Act, which was dismissed. The petitioner then filed a writ petition in the Calcutta High Court challenging the assessment order on the ground that she, as a Hindu female, could not represent the HUF as a manager for the purpose of assessment of income tax.
Finding of the Court:
The Calcutta High Court held that a Hindu female, who is not a coparcener, can represent a Hindu undivided family as a manager for the purpose of assessment of income tax, where the male members are all minors and of whom the natural guardian is their mother. The court found that there is nothing in the Indian Income Tax Act to prevent a female from representing a Hindu undivided family for the purposes of assessment under the Act, in such a case. The court further held that the term "manager" as used for purposes of the Act should not be confused with the term "karta" as used in Hindu Law, and that a female can act as a manager representing a Hindu undivided family for purposes of assessment of Income Tax, even though she may not be a karta or coparcener.
Issues: 1. Whether a Hindu female can represent a Hindu undivided family as a manager for the purpose of assessment of income tax? 2. Whether the term "manager" as used for purposes of the Indian Income Tax Act, 1922 should be confused with the term "karta" as used in Hindu Law?
Ratio Decidendi: 1. The court held that a Hindu female, who is not a coparcener, can represent a Hindu undivided family as a manager for the purpose of assessment of income tax, where the male members are all minors and of whom the natural guardian is their mother. 2. The court held that the term "manager" as used for purposes of the Indian Income Tax Act, 1922 should not be confused with the term "karta" as used in Hindu Law, and that a female can act as a manager representing a Hindu undivided family for purposes of assessment of Income Tax, even though she may not be a karta or coparcener.
Final Decision: The Calcutta High Court dismissed the writ petition filed by the petitioner, Sushila Devi Rampuria, challenging the assessment order passed by the Income Tax Officer.
( 1 ) THE facts in this case are shortly as follows: One Hulas Chand Rampuria also known as Bhanwarlal Rampuria was, until his death, the karta of a Hindu undivided family consisting of himself and his two minor sons. He was a partner of the firm of Hazarimull Hiralal and held shares in two companies, namely, Rampuria Properties Ltd. , and Rampuria Cotton Mills Ltd. The Hindu, undivided family, of which he was a karta, was assessed in the name of Hulas Chand Rampuria H. U. F. upto the assessment year 1942-43. The said Bhanwarlal Rampuria died sometime in the year 1947 leaving him surviving his widow Sushila Devi Rampuria and two minor sons. The assessments for the assessment years 1943-44 to 1947-48 were made in the name of 'sushila Debi Rampuria for self and as natural guardian of her minor children. Since the assessment year 1948-49, the assessment had been made in the name of 'sushila Debi Rampuria representing H. U. F. known as Hulas Chand Rampuria'. All the returns were made on the footing of a Hindu undivided family. In respect of the assessments for the years 1948-49 to 1951-52, similar assessments were made. The assessments under Section 34 of the Indian Income Tax Act (hereinafter referred to as the 'act') for the assessment years 1946-47 and 1947-48 were also made in the name of 'sushila Devi Rampuria representing the said Hindu undivided family' on the basis of returns filed by her and showing the status as that of a Hindu undivided family.
( 2 ) IN respect of the assessment year 1951-52, the Income Tax Officer District (II), Calcutta issued a notice dated the 12th March, 1952 under Sections 22 (2) and 38 of the said Act. The notice was received by the petitioner on 18th March, 1952. Somehow or other nothing was done until 16th February, 1955 when the Income Tax Officer sent a reminder stating that in default of compliance with the said notice, the assessment would be completed under Section 23 (4) of the said Act. On the 28th March, 1955 the petitioner filed a return for the assessment year 1951-52. This return was made by the petitioner describing herself as the legal representative of Bhanwar Lal Rampuria, deceased. On 7th February, 1956 the Income Tax Officer issued a notice under Section 22 (4) of the said Act. The notice was addressed to "sm. Sushila Devi Rampuria representing the H. U. F. M/s. Hulas Chand Rampuria, 1948, Cotton Street, Calcutta", asking for production of accounts and documents etc. On the 10th February, 11956 the petitioner asked for time for a fortnight for production of the books. The petition was made by "sm. Sushila Devi Rampuria representing the H. U. F. of 5b, Lord Sinha Road, Calcutta". An order of assessment was made on 31st March. 1958. A copy of this order is Ex. "e" to the petition. This assessment order is for the assessment year 1951-52. The name of the asses-see is "sm. Sushila Devi Rampuria representing the H. U. F. Bhanwar Lal Rampuria, C/o Messrs. Hazarimull Rampuria, 148, Cotton Street, Calcutta". The status of the assessee has been described as "h. U. F. " On 18th April, 1956 the petitioner made an application under Section 35 of the said Act for rectification of the assessment order stating that certain dividends were included twice, In this petition, the petitioner described herself as "sm. Sushila Devi Rampuria representing the H. U. F. left by Bhanwa'r Lal Rampuria (deceased) of 5b, Lord Sinha Road, Calcutta. " In fact, the assessment order was rectified. On April 19, 1956 the petitioner filed an appeal against the assessment order before the Appellate Assistant Commissioner. No ground was taken to the effect that the petitioner, could not represent the Hindu undivided family or that the assessment was made in the wrong name. On 10th May 1957 the petitioner was served with a notice under Section 7 of the Bengal Public Demands Recovery Act. On 6th June, 1957 the petitioner filed an objection under Section 9. On 21st August, 1957 the petitioner's objecti
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