S P JAISWAL Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) IN these seven Income-tax References, ITR No. 65 of 1974, at the instance of the assessee, Shri S. P. Jaiswal, under Section 256 (2) of the I. T. Act, 1961, hereinafter referred to as "the Act" and ITRs Nos. 98, 99 and 100 to 103 of 1977, at the instance of the Commissioner of Income-tax, Haryana and Chandigarh, Rohtak, hereinafter referred to as "the revenue", under Section 256 (2) of the Act, an identical question as to whether in law, on the facts and circumstances of the given cases, as found by the Income-tax Appellate Tribunal, the varying interest amounts earned by the two sons, a daughter and the wife of the assessee in the respective assessment years on the amounts advanced to them by the assessee are or are not to be taxed in the hands of the assessee, has been posed for the opinion of this court.

(2.) THE backdrop of the facts against which the opinion on the question posed is to be formulated can be stated thus :

(3.) IN the assessment year 1963-64, the assessee in his estimate of advance tax filed on September 4, 1962, had shown Rs. 19,000 as interest income. In his first return for the assessment year 1963-64, filed on August 16, 1963, the assessee had shown the interest income of Rs. 15,717 which he deleted from the revised return. The ITO, with the following observations, held that the interest income in question was to be taxed in the hands of the assessee :