Punjab & Haryana H.C : Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that the declaration dated December 3, 1969, and the partition deed dated April 1, 1970, had the effect of diversion by an overriding title of the share income from the firm of Saboo Industries to the hands of the individual family members ?

Counsel Appeared

Ashok Bhan with Ajay Mittal, for the Revenue : M.L. Garg, for the Assessee

S. S. SODHI, J.:

The question of law referred for the opinion of this Court is in the following terms :

“Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that the declaration dated December 3, 1969, and the partition deed dated April 1, 1970, had the effect of diversion by an overriding title of the share income from the firm of Saboo Industries to the hands of the individual family members ?”

The matter here is squarely covered by our decision in IT Ref. No. 159 of 1980 [CIT vs. Varinder Kumar (1989) 180 ITR 180) (P&H)], decided on December 1, 1988. The reference is, accordingly, answered in the negative, in favour of the assessee and against the Revenue. There will be no order as to costs.

[Citation :180 ITR 262]