COMMISSIONER OF INCOME-TAX Vs. SHIV SINGH

JUDGEMENT

(1.) KIRPA Singh, a non-resident Indian, purchased three acres of agricultural land in village Rahimpura. According to his father, Shiv Singh, the annual income from this land was about Rs. 3,000 and this entire amount was spent by him on his household expenses. In other words, no part of it was paid to or received by Kirpa Singh: Does this and the further fact that there was also an investment by Kirpa Singh in a Fixed Deposit Receipt of Rs. 40,000 in their joint names, that is, of Kirpa Singh and Shiv Singh, render Shiv Singh an "agent" of son Kirpa Singh, in terms of Section 163 (1) (c) of the Income-tax Act, 1961 ? Herein lies the controversy raised.

(2.) THE following question arose for decision :

(3.) SECTION 163 (1) (c) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), reads as under :