SETH TULSIDAS BOLUMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE two references arising under the Income-tax Act, 1961, and the Wealth-tax Act, 1957, raise certain common issues for consideration concerning the same assessee. It is convenient to dispose of these two references together.

(2.) R.C. No. 342 of 1982 is a reference made by the Income-tax Appellate Tribunal, under section 256(1) of the Income-tax Act, 1961, concerning the income-tax assessment year 1977-78. R.C. No. 343 of 1982 is a reference made by the Tribunal under section 27(1) of the Wealth-tax Act, 1957, concerning the wealth-tax assessment years 1976-77 and 1977-78. In R.C. No. 342 of 1982, the question referred for consideration of this court is :

(3.) IN connection with the income-tax assessment for the year 1977-78, the assessee claimed that the properties which fell to his share in the partition belonged to a smaller joint family consisting of himself and his wife. The assessee urged that interest of Rs. 22,006 was paid by him to the joint family in respect of the aforementioned properties and claimed the interest as deduction from his individual income.