SHEIKH ZAINUDDIN AHMAD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE two Miscellaneous Judicial Cases have been heard together and they are being disposed of by this judgment. Under S. 66(2) of the Indian IT Act this Court required the Tribunal in respect of M.J.C. 389 of 1953 to state the case on the following points of law :

(2.) THE facts leading to these applications may be shortly stated as follows. The four brothers, the petitioners before us, namely, Sheikh Zainuddin Ahmad, Sheikh Ainuddin Ahmad, Sheikh Sirajuddin Ahmad and Sheikh Minhajuddin Ahmad, had purchased a certain house in the town of Gaya on the 25th of April, 1947, for a consideration of Rs. 25,000. The IT Department received information from the Registration Office to that effect. Thereupon the ITO started the assessment proceedings and asked the assessees, the petitioners, to explain the source of this income of Rs. 25,000. The assessees appeared and gave explanations to the effect that all these four brothers had contributed, though unequally, to the consideration for the purchase of this house. One of these brothers, namely, Sheikh Minhajuddin Ahmad, was a student at the time of the assessment. The ITO rejected the explanations given by the four brothers and he made the following observation :

(3.) SEC . 3 of the IT Act provides that income -tax shall be charged "in respect of the total income of the previous year of every individual, HUF, company and local authority, and of every firm and other AOP or the partners of the firm or members of the association individually."The question is whether the finding of the Department that the assessee should be taxed in their status as an AOP is liable to be interfered with by this Court.