COMMISSIONER OF INCOME TAX Vs. P MURUGESAN

JUDGEMENT

(1.) THE question referred to us at the instance of the Revenue is as to whether the income deemed to have accrued to a father from and out of the investment made in the names of his minor children to whom the father had gifted the property is assessable in the hands of the father, even when the father had no other taxable income. THE assessment years are 1977-78, 1978-79, 1979-80, 1980-81 and 1981-82.

(2.) THE assessee is a non-resident. He had no income in India, except the secured income realised from the investment of the amounts gifted by him to his minor children, which income was liable to be included in his total income and taxable accordingly. Though the order of reference mentions Section 64(1)(iv) of the Income-tax Act, 1961, the correct provision has been referred to by the Income-tax Officer in his assessment order and is Section 64(1)(v) of the Act.

(3.) THE assessee is thus a person by whom tax or any other sum of money is payable under the Act. Any one who is liable to pay tax under the Act is therefore liable to be treated as an assessee.