{"id":245284,"date":"1957-02-06T00:00:00","date_gmt":"1957-02-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/rowji-sojpal-vs-commissioner-of-income-tax-on-6-february-1957"},"modified":"2018-04-19T15:41:24","modified_gmt":"2018-04-19T10:11:24","slug":"rowji-sojpal-vs-commissioner-of-income-tax-on-6-february-1957","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/rowji-sojpal-vs-commissioner-of-income-tax-on-6-february-1957","title":{"rendered":"Rowji Sojpal vs Commissioner Of Income-Tax, … on 6 February, 1957"},"content":{"rendered":"
Bombay High Court<\/div>\n
Rowji Sojpal vs Commissioner Of Income-Tax, … on 6 February, 1957<\/div>\n
Equivalent citations: AIR 1957 Bom 294, (1957) 59 BOMLR 445, ILR 1957 Bom 447<\/div>\n
Author: C Chagla<\/div>\n
Bench: Chagla, Tendolkar<\/div>\n<\/p>\n
<\/pre>\n
JUDGMENT<\/p>\n
 Chagla, C. J. <\/p>\n
 1. This is one of those cases which goes to show that the legislature in enacting a taxing staute does not — possibly cannot — take into consideration all eventualities and all contingencies. The assessee was joint with this brother prior of 1932. On the 19th of April 1932 there was a partition and the propety in question came to his share on that partition. At the date of the partition the assessee had sons and therefore on the partition taking place the property became joint family property as between the assessee and his sons. There was a partition between the assessee and his sons on the nth of June 1944 and on that partition again the property came to the share of the as-cessee. On the 22nd of August 1947 the assessee sold the property and made admittedly a capital gain of Rs. 97,251\/-. The Department seeks, to bring this capital gain to tax.\n<\/p>\n
 2. It is not disputed by the assessee that he is liable to pay the tax, unless his case falls within the second proviso to Sub-section (1) of Section 12B; and that proviso runs as follows:\n<\/p>\n
  “Provided further that the tax shall not be payable by an assessee in respect of any profits or gains arising from the sale, exchange or transfer of a capital asset, being property the income of which is chargeable under Section 9 and which has been possessed by the assessee or a parent of his for not less than 7 years before the late on which the sale, exchange or transfer took place: ……\n<\/p>\n
Therefore, in order to attract the application of this proviso, the assessee must establish, first, that the Capital asset is a propertv which is chargeable under Section 9, and, secondly, that he or his parent has been in possession of the property for not less than seven years. Now the first” condition is satisfied because this is a property which is chargeable under Section 9. The difficulty in the way of the assessee is to establish that he or his parent was in possession of this property for not less than seven years before the date of the sale. Now undoubtedly on the partition taking place between him and his sons, the assessee was in possession of this property and he continued to be in possession till the 22nd of August 1947. But the question is whether it could be said that he was in possession with regard to the remaining prior period which is necessary to make up the seven years prescribed by this proviso. Now during that remaining period the property belonged to the undivided Hindu family consisting of, the assessee and his sons’, and the narrow question that arises for our consideration is whether it could be said that the assessee was in possession of this property when he was not the sole owner or exclusive owner of this property and the property belonged to the joint family.\n<\/p>\n
 3. Now it is been settled Jaw as to the rights-of coparceners in  a  joint   Hindu family that    it cannot be predicated of any property of any joint Hindu family that a particular share in it belongs to a particular coparcener.   Hindu law recognises both  community of interest and unity  of possession  in   the joint   family properties between  all the members of  the family.   In other words, all coparceners are  owners  of  the property and  all coparceners are entitled to possession of the property.    Could   it,  therefore, be  said that during this period, when the Joint family was the owner of this property, the assessee was in possession of it?  It is clear that the expression “possessed by the assessee” used  in   the second  proviso means “possessed     juridically”.   The     possession   contem-plated     is a  juridical    possession     and not    actual possession. The   juridical   possession’ of   this   pro-perty was not  with  the assessee,   but with  the assessee  along with    his sons    who    were   the coparcenens and who   constituted  the  Joint  and undivided Hindu family    at the material    time. Now Mr.  Palkhivala’s     argument    is     that     there is no     warrant    for    reading      into     this      Section the qualification that the possession contemplated by this section is an  exclusive possession. Mr. Palkbivalii says  that  his  client was in possession of this property even though he may have been   in possession jointly with  others.    Now   it would not be correct to say that a person, owns a property or is in possession of a property unless the ownership or the possession was exclusive.   If the  ownership   or   possession  was  not exclusive, then the ownership or possession would have to be qualified or limited by appropriate words.   In not so  qualifying  or limiting the  expression “possession” it is clear that the Legislature contemplated the exclusive possession on the part of the assessee or his parent.   Mr. Palkhivala drew   our attention to  the provision  of Hindu  law where a  coparcenary is constituted by a father and his sons, and he emphasized the fact that in the case of such a coparcenary the father is entitled to possession of the property. It is perfectly true ‘that, when you have a father constituting a joint family with his sons, he has  a right to fie  In possession of joint family property and exclude the possession of the sons and the sons cannot have any grievance against any such  exclusion so long as the joint family continues.   But the possession here is not juridical, but  actual    possession.    Although   the father may be in actual possession, the Juridical possession  is  still with the father and the  sons jointly;   it is  not solely” with  the father.    If  our right in the view that we take — and that aspect of the case is not challenged by Mr. Palkhivala –that the possession that we are dealing with here is Juridical and not actual possession, then we Jail to see what difference it would make to this argument if the father is in actual possession, but not in juridical possession, of the whole of the property.\n<\/p>\n
 4. Mr. Falkhiwala has drawn Our attention to the difficulties and anomalies that might be created by our placing this construction on the section when a question arises as to tenants-in-common or Joint tenant. It is unnecessary to decide more than what actually arises for our decision on this reference. We realise the hardship of the assessee in case where he is the owner of this property and had rights of ownership in this property for a very long time even longer than the seven years required by the proviso. But it is a mistake to attempt to gather the intention cf the Legislature or to construe a section by considering what difficulties will arise if a particular construction was given to this section. Undoubtedly if two views are possible and two constructions are possible, it is better to lean in favour of that construction which would lead to the least amount
\nof difficulty and, which would be most favour
\nto the assessee.   But if the construction is
\nthen it is for the Legislature to amend to
\nso as to avoid hardships being caused to
\ntain type of assessees.\n<\/p>\n
 5. Mr. Palkhivala says that he does not to give up the contention that was put of before the Tribunal that a Hindu undivided would fall in the category of “a parent” re to in the proviso. How the sons of the as who were Joint with him can become a under the proviso it is rather difficult for understand, and however much we may stretch the language of a proviso in favour assessee, we cannot convert sons into parer<\/p>\n
 6. We, therefore, agree with the view by the Tribunal that the case of the assessee not fall within the second proviso to Section 12] We must answer the question submitted to the negative.    Assessee to pay the costs.\n<\/p>\n
 7. Answer in ne(sic)<\/p>\n","protected":false},"excerpt":{"rendered":"
Bombay High Court Rowji Sojpal vs Commissioner Of Income-Tax, … on 6 February, 1957 Equivalent citations: AIR 1957 Bom 294, (1957) 59 BOMLR 445, ILR 1957 Bom 447 Author: C Chagla Bench: Chagla, Tendolkar JUDGMENT Chagla, C. J. 1. This is one of those cases which goes to show that the legislature in enacting a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11,8],"tags":[],"class_list":["post-245284","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"\nRowji Sojpal vs Commissioner Of Income-Tax, ... on 6 February, 1957 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/rowji-sojpal-vs-commissioner-of-income-tax-on-6-february-1957\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rowji Sojpal vs Commissioner Of Income-Tax, ... on 6 February, 1957 - 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