ANJU MEHRA Vs. UNION OF INDIA

JUDGEMENT

(1.) In the present writ petition, the petitioner, who is the income tax assessee and in whose hands the income of her two minor sons has been clubbed in view of the provisions of Section 64(1A) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), has challenged the constitutional validity of Section 64(1A) of the Act, which was introduced in Section 64 of the Act by the Finance Act, 1992 w.e.f. 1.4.1993. Prior to the Assessment Year 1993-94, the petitioner, her husband and their two minor sons were filing their separate Income Tax Returns and they were being assessed separately. The income of the minor sons was not being clubbed either in the income of the petitioner or her husband. For the Assessment Years 1993-94 and 1994-95, the petitioner filed her Income Tax Returns declaring total income of Rs. 1,23,610/- and Rs. 1,77,560/-, respectively. While filing the said Returns, the petitioner had added a note to her Returns that she had not included in her income, the income of her two minor sons arising in their own right and without the aid of any assets or funds provided by her to them directly or indirectly.

(2.) The Assessing Authority completed the assessment of the petitioner under Section 143(3) of the Act at Rs. 3,53,832/- (her income and income of the minor sons) for the Assessment Year 1993-94 and at Rs. 4,55,860/- (her income and income of the minor sons) for the Assessment Year 1994-95 by clubbing the income of two minor sons of the petitioner with the income of the petitioner in her hands as her income was greater than that of her husband.

(3.) The aforesaid assessment order was upheld in appeal by the Commissioner of Income Tax (Appeals), Amritsar and in second appeal by the Income Tax Appellate Tribunal.