NIZAMUDDIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application under s. 256(1) of the IT Act, the Tribunal has referred the following question for the opinion of this Court :

(2.) ASSESSMENT years, in all, are 1983-84 to 1985-86, that assessee-respondent has made oral declarations on Nov., 1982 in favour of his minor sons Zahiruddin and Mohd. Zafar and similar declarations have been made on 31st Dec., 1982, in favour of his minor son Moinuddin. The assessee, by these oral declarations, claimed that he has gifted the properties to his minor sons. Such gifted properties were accepted and those properties are fetching rental income Rs. 11,400 in the asst. yr. 1983-84 and Rs. 13,500, in each of the two subsequent assessment years. Assessee claimed that after gift, rental income from gifted property should not be taxed in hands of assessee. The AO has charged that income and assessed that income in the hands of assessee, invoking the provisions of s. 64(1)(v) of the IT Act, 1961.