LAWS(DLH)-1981-9-35

INDIAN GLASS AGENCY Vs. COMMISSIONER OF INCOME TAX

Decided On September 22, 1981
INDIAN GLASS AGENCY Appellant
V/S
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) All these references under the Income-tax Act raise the same question. They relate to the assessments of the firm known as Indian Glass Agency for the assessment years 1971-72 to 1974-75, the relevant previous years being the financial years 1970-71 to 1973-74. As we. shall point out later, the facts relating to the first of these years and the others are slightly different and we may, to start with, take the facts set out by the Tribunal in relation to the assessment year 1971-72.

(2.) The assessee firm had four partners : Jai Gopal, (and his three sons) Satish Kumar, Sushil Kumar and Santosh Kumar. On 14-5-1970, Jai Gopal purported to make a gift to Deepankar, the minor son of Sushil Kumar. It is stated that the gift was made by Jai Gopal giving necessary instructions to the firm and the firm giving effect to the transaction by debiting the account of Jai Gopal and crediting an account started for Deepankar with the said amount, Sushil Kumar accepting the gift on behalf of the minor.

(3.) For the assessment year 1971-72 the assessee firm claimed as a deduction a sum of Rs. 1,587 credited to the account of Deepankar in respect of the sum of Rs. 15,000 said to have been gifted to him by his grand father. The Income-tax officer disallowed the deduction claimed by the assessee on the very short ground that, on the date of the alleged gift, the cash balance with the firm was only Rs. 3,187 and bence there could have been no valid gift of Rs. 15,000 by Jai Gopal in favour of Deepankar.