VERMA J P Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS judgment governs both References Nos. 4 and 5 of 1987.

(2.) THE following two questions have been referred under Section 256 of the Income-tax Act, 1961 :

(3.) THE Income-tax Officer held that out of the investments in the National Savings Certificates and a double-storeyed house property, a sum of Rs. 8,000 only could be said to represent ancestral funds which too had all along been treated as individual funds of the assessee and were not separately identifiable. THE alleged loan given by the assessee was without normal consideration of interest. THErefore, the assessee was the real owner of the house property, No. 22, Chandralok. THE Income-tax Officer added Rs. 5,710 as income from the property in question as computed in the assessment of the assessee's wife and the assessment was completed by the Income-tax Officer accordingly.