M JAFFAR SAHEB Vs. INCOME TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) The following Question has been referred by the Appellate Tribunal at the instance of the assessee under Section 256 (1) of the Income Tax Act, 1961.

(2.) The. facts found by the Tribunal are as follows:

(3.) The assessee is an individual. He had transferred on 16-1-1970 Lorry No.3054 valued on that date at Rs.46,676/- in favour of his spouse Smt.Mehnmnisa Begum. The Lorry was sold on 22-4-1970 for Rs.37,000/-. Another Lorry was purchased on 25-12-1970 for Rs.40,000/-. That was again sold on 31-1-1972 for Rs.42,000/-. Another Lorry was purchased on 2-12-1972 for Rs.62,000/- which was again sold on 31-3-1973 for Rs. 62,000/- Another Lorry was purchased on 10-7-1973 for Rs.85,000/- which was sold on 26-7-1977 for Rs.50,000/-. Yet another Lorry was purchased thereafter for Rs.1,18,500/- which was sold on 7-5-1980 for Rs.80,000/-. Then a Lorry No.APA 9977 was purchased for Rs. 1,10,1000/- The Income arising to the wife from this Lorry APA 9977 was returned by her as her income from her business. But the Income Tax Officer added it to the income of the assessee under Section 64 (1) of the Income Tax Act for the assessment year 1981-82 corresponding to the previous year ended 31-3-1981. The Tribunal found that the original lorry transferred to the wife was not held by her in the previous year as it has been sold away. But a chain of purchase and sale of lorries continued so that to the extent of the original amount of Rs.37,000/- fetched by the first lorry which was sold on 22-4-1970, which the wife had invested, was attributable to the assessee and the income in proportion to that amount had to be added under Section 64 (1) of the Income Tax Act.