COMMISSIONER OF INCOME TAX Vs. NAWAB HASHIM JAH

JUDGEMENT

(1.) THIS is a reference made at the instance of the CIT. The question referred is as follows :

(2.) IN two appeals filed by the assessee before the Tribunal in relation to the asst. years 1974 75 and 1976 77, a common question arose regarding the income from the property to be added in the assessment of the assessee, Nawab Hashim Jah, under S. 64 of the IT Act (hereinafter referred to as " the Act ").

(3.) WE can visualise two types of cases of transfer by an assessee to the spouse. There may be cases where the immovable property belonging to the husband is gifted to the wife and she realises some income there from or realises money by selling it. Alternatively, the assessee might have gifted cash to his wife and she might have acquired immovable property with that money which would have furnished income in her favour or she might have later sold the immovable property and realised money. The question arises whether the income arising from the property so purchased or the money so realised by the sale thereof subsequently 'should by included in the income of the assessee. Such a question arose, in fact, in Mohini Thapar vs. CIT (1972) CTR (SC) 214 : (1972) 83 ITR 208 (SC).