COMMISSIONER OF INCOME TAX Vs. SATYANARAYAN SIKARIA

JUDGEMENT

(1.) THIS reference under Section 256(2) of the Income-tax Act, 1961, is made at the instance of the Revenue seeking for the opinion of the court on the following questions of law :

(2.) FOR the assessment year 1988-89, the assessee submitted his return of income as an individual. Prior to the partition that took place on June 30, 1986, the property belonged to a Hindu undivided family (HUF in short) in which the assessee was the karta. He became the owner of the property on the strength of the said partition. The assessee in his return of income showed income from house property and claimed deduction under Section 24(1)(iv) of the Act for annual charges amounting to Rs. 2,10,000. The memorandum of confirmation of family arrangement containing total partition of Satyanarayan Sikaria and Sons, Guwahati, dated July 1, 1986, embodied, inter alia :

(3.) BEFORE addressing the questions involved in the reference, it would be appropriate to look to the material portion of Section 24(1)(iv) of the Act which reads as follows :