Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 1967 (12) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1967 (12) TMI 27 - SC - Income TaxWhether in computing the taxable expenditure of the assessee Hindu undivided family the sum of ₹ 28,683 being the expenditure incurred by Shri Surendra, the karta of the Hindu undivided family, out of his own self-acquired and separate property was includible in law ? Whether in computing the taxable expenditure of the assessee Hindu undivided family the sum of ₹ 10,321 being the amount spent by trustees was includible in law? Held that:- For the reasons already set out in dealing with the assessment year 1958-59, that the expenditure incurred by Surendra out of his personal estate is not liable to be included in the taxable expenditure for the year 1959-60. If the amount expended from out of the trust estate be held, for reasons already set out, to be expended by the trustees, the case falls within the terms of clause (i) : if it be held that the expenditure was incurred by or on behalf of the children after the income was received from the trustees it would full within clause (ii). The legislature has by the amended clause (ii) expressly provided that, where the assessee is a Hindu undivided family, any expenditure incurred by any dependant of the assessee, from or out of any income or property transferred directly or indirectly to the dependant by the assessee, is liable to be included. The words are not susceptible of the interpretation that the dependant who incurs the expenditure must be other than the dependant to whom the property is transferred by the assessee. Expenditure incurred for his own purposes by the dependant to whom the property is transferred by the Hindu undivided family clearly falls within section 4(ii) as amended. Modify the order of the High Court. The answer to the first question for each year will be in the negative. The answer to the second question will be in the affirmative.
|