1. Heard Shri R. C. Mukati, for the petitioner and Shri A. K. Chitley, for the respondents, on the question of admission.
2. Notice was issued to show cause as to why this petition should not be admitted. Learned counsel for the respondents is served and Shri Chitley appears for them. Learned counsel for the parties agree that the matter be finally heard and disposed of.
3. It appears that the assessee has interest in two trusts, Sir Hukamchand Trust and Lady Kanchanbai Trust. The question that arose was whether he had this interest in his individual capacity or as representing the Hindu undivided family. It appears that, earlier, this court, in ML C. C. No. 240/78, of the same assessee, took the view that the interest that he had was of only Hindu undivided family and not in his individual capacity. Against this judgment of this court, the matter is pending in the Supreme Court.
4. The Tribunal, in the order under question, has followed the decision of this court and taken the view that his interest in these trusts could not be assessed in the hands of the assessee individually as, according to the judgment of this court, this interest comes to him in the capacity of a Hindu undivided family. In these circumstances, this application has been made by the Revenue to ask the Tribunal to make a reference so that the reference could be decided in the light of the decision of the Supreme Court in the earlier matter.
5. Having heard learned counsel for the parties, in our opinion, a question of law does arise. It is, therefore, directed that the Income-tax Appellate Tribunal shall state a case and make a reference for answering the question 'whether, on the facts and in the circumstances of this case, the Income-tax Appellate Tribunal was correct in law in directing exclusion of the value of life interest and interest as reversioner from the assessment of the assessee in his individual capacity.'
6. In the circumstances of the case, the parties are directed to bear their own costs so far as these applications are concerned.