Wanchoo, C.J.—This is a reference by the Appellate Tribunal under the Income-tax Act.

2. The following question has been referred to this Court for answer :

"Whether on the fact and in the circumstances of this case, the Tribunal was justified in holding that the assessee was entitled to the higher exemption limit of Rs. 7,200/- in terms of the proviso to paragraph A in part I of schedule I of sec. 2 of the Indian Finance Act of 1951?"

3. The facts of the case are these, the assesses Messers Dhannalal Devilal of Jaipur filed a return for the assessment year 1951-52, and claimed the benefit Of the higher exemption limit as provided in paragraph A in part I of schedule I of sec. 2 of the Indian Finance Act of 1951. The firm in question was at that time owned by two minors named Sitaram and Madhav who were members of an undivided Hindu family. Further, at the relevant time this family had two other members, namely the widowed mother and the widowed grandmother of the two minors. The question arose whether in view of the existence of these ladies, and particularly the widowed mother, the assessee could claim the higher exemption limit of Rs. 7,200/-. The Income-tax Officer held that they could not. The Appellate Assistant Commissioner, however, held that they could. Thereupon, there was an appeal before the Tribunal which agreed with the Appellate Assistant Commissioner. The present reference has been made by the Tribunal on the application of the Commissioner of Income-tax. It came for hearing before a Division Bench of this Court. The Division Bench has referred the following question arising out of the reference by the Appellate Tribunal to a Full Bench for answer, namely :

"Whether a son or a grand son can be said to be a lineal descendant of his mother or grand-mother respectively within the meaning of condition(b) of clauses(1) of part I (A) of Schedule I of the Indian Finance Act (No. XXII) of 1951 which prescribes Rs. 7,200/- as an exemption limit in the case of Hindu undivided family." J

4. The relevant provision on the interpretation of which the answer to this question depends is as follows:-

"The limit referred to in the above aviso shall be— (i) Rs. 7,200/- in the case of every Hindu undivided family which satisfies as at the end of the previous year either of the following conditions, namely:—

(a) that it has at least two members entitled to claim partition who are not less than 18 years of age; or

(b) that it has at least two members entitled to claim partition neither of whom is a lineal descendant of the other and both of whom are not lineally descended from any other living member of the family;..."

The first question therefore, the arises for determination is who are the members of an undivided Hindu family, and in particular whether females are also members of an undivided Hindu family. It is clear that all males who are joint are members of a Hindu undivided family. So far as females are concerned, it has been held that wives of male members of undivided Hindu family and unmarried daughters of male member of undivided family are also members of the Hindu undivided family In Vedathanni vs. The Commissioner of Income-tax, Madras(l) it was held that widows entitled to maintenance are dependent members of an undivided Hindu family.

5. Paragraph 549 of the Principles of Hindu Law by D. F. Mulla (11th Edition) speaks of maintenance of female members of joint Hindu family,and these female members are mentioned in paragraph 543 of the wives of male members and widows of male members who are dead. Unmarried daughters also are mentioned as female members in paragraph 546. In the Commissioner of Income-tax, Bombay Presidency vs. The Heirs of the Late Gomedalli Laxminarayan(2), it was held that where the family consisted of a single male member and his mother and wife, it was an undivided Hindu family. Rangnekar J. pointed out at page 623-624 that "under the Hindu law, an undivided Hindu family is composed of (a) males and females.

Click Here to Read the rest of this document