SIREHMAL NAWALKHA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an income-tax reference wider Section 256(1) of, the Income-tax Act, wherein the following question of law has been referred to this court for its opinion : . ..

(2.) THE assessee is the owner of a building known as "Deep Shikha" situated in C-Scheme, Jaipur. It has certain outhouses attached to it, THE assessee claims to have gifted the said outhouses to his wife on September 30, 1966. A declaration in writing was made on October 10, 1966, duly signed by both the assessee as well as his wife, the donee, but the same was not got registered by the assessee with the Sub-Registrar (the declaration is dated July 10, 1966, but that is only a typographical mistake). THE water receipts, electric receipts and bills are in the name of Smt. Premlata, donee, the wife of the assessee. Smt. Premlata has let out the building (said outhouses) to the Appellate Assistant Commissioner of Income-tax, A range, Jaipur, at Rs. 800 per month with effect from June 1, 1967. THE repairs and alterations are also being done by Smt, Premlata, donee, and Smt. Premlata Nawalkha was assessed to wealth-tax on the value of outhouses. Since September 30, 1966, Smt. Premlata is in possession of the property, exercising her rights as owner and also receiving rent, whereas the rental income from these houses was assessed in the hands of the assessee in view of Section 64 of the Income-tax Act treating it as transfer by the assessee to his spouse.

(3.) SECTION 2(xx) defines " previous year " in relation to any assessment year......under the Income-tax Act, whereas "gift" has been defined under SECTION 2(xii) as under: