COMMISSIONER OF INCOME TAX Vs. MOHMADMIYA A TOPIWALA

JUDGEMENT

(1.) THE following two question of law have been referred to his court for opinion by the Tribunal, Ahmedabad Bench 'B', under section 256 of the Income -tax Act, 1961 ('the Act') :

(2.) FACTS : The assessee, i.e., Mehmoodmian A. Topiwala, is being assessed in the status of an individual. This reference relates to the assessment year 1974 -75. Three brothers, i.e., (1) Shri Abdullahmian A. Topiwala, (2) Shri Mohmmed Husein A. Topiwala, and (3) Shri Mehmoodmian A. Topiwala, were joint owners of a land admeasuring 7,629 sq. yards situated at Paldi in Ahmedabad.

(3.) FEELING aggrieved, the assessee preferred and appeal before the Appellate Assistant Commissioner. The Appellant Assistant Commissioner noted that the Income -tax Officer had not given any reason for applying the provisions of section 64 while adding Rs. 2,860 to the income of the assessee. The appellants Assistant Commissioner referred to the past record and presumed that this interest might have been paid on Rs. 15,000 which Hafsabanu had received by cheque from the assessee's brother. He further found that the amount was not transferred by the assessee to his wife but was gifted by the assessee's brother and, hence, section 64 had no application. In that view of the matter, the Appellate Assistant Commissioner deleted the addition of Rs. 2,860.