Arvind Chandulal vs Commissioner Of Income-Tax, Gujarat on 18 August, 1981
In our opinion, this decision in [1979] 117 ITR 784 (SC), does not in any way go contrary to the conclusion which is arrived at by us in the light of the decision of the Privy Council in Rani mewa Kuwar v. Rani Hulas Kuwar [1874] LR 1 IA 157 and Khunni Lal v. Gobind Krishna Narain [1911] LR 38 IA 87, approved by the Supreme Court in Sahu Madho Das v. Mukund Ram, AIR 1955 SC 481. It was contended on behalf of the Revenue by Mr. Desai that there was an estoppel against Arvind pleading contrary to the family arrangement and the title of Arvind was only by the family arrangement and there was no passing of the property contrary to the family arrangement. Even against outsiders, that is, the income-tax authorities, he was estoppel from contending that he is not the absolute owner. There was election to become an absolute owner and the assessee having elected to do so, he cannot result from that position. He said that Arvind who was a minor at the time of the family arrangement after arranging majority continued to receive the benefit of the family arrangement and, therefore he must be deemed to have elected to revive the family arrangement.