COMMISSIONER OF INCOME TAX Vs. SATISH PAI

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961. The Tribunal has referred the following question :

(2.) THE assessment year is 1972-73. THE assessee inherited a house property subject to certain conditions under a will dated December 30, 1966, left by his father. THEreunder, the assessee was liable to pay Rs. 30 per month to his mother towards maintenance. He was also liable to pay Rs. 10,000 to each of his unmarried sisters at the time of their marriage. He performed the marriage of his sister during the relevant year and claimed deduction of the expenditure incurred thereon besides the maintenance paid. In all, he claimed deduction to the tune of Rs. 50,000.

(3.) THE next question is under what other provision of the Income-tax Act, 1961, such an amount could be allowed as deduction. Counsel for the assessee has not been able to refer to any other provision in the Income-tax Act. He, however, submitted that in computing the income from a property of the assessee, the amount which was liable to be paid to third parties out of the income thereof should be allowed as deduction as an overriding charge on the property.