9911796707
TMI Blog1968 (8) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... he trust deed dated the 1st April, 1955, been rightly included in the hands of the assessee under section 16(3)(b) of the Indian Income-tax Act, 1922 ? (ii) Whether, on the facts and in the circumstances of the case, the assessee is entitled to the reduction of the annual letting value of the Faridkot House in Diplomatic Enclave, New Delhi, by Rs. 1,800 under the first proviso to section 9(2) of the Income-tax Act, 1922, notwithstanding the fact that the annual letting value of the Faridkot House situated at Lytton Road, New Delhi, is already reduced by Rs. 1,800. In order to appreciate the contentions that have been advanced before us, it will be proper to set out the relevant portions of the statement of the case, wherein the facts are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the settlor living at the date thereof and the lives and life of the survivors and survivor of them and the period of twenty-one years after the death of such survivor. The assessee owns the house, known as the Faridkot House situated it Lytton Road, New Delhi, which was treated as the property in the occupation of the assessee for the purposes of his residence in the assessment year 1960-61. The assessee owned a second property known as Faridkot House situated in Diplomatic Enclave, New Delhi, in the said year which also was in his occupation for the purposes of his own residence. " The assessee is His Highness Raja Sir Harinder Singh of Faridkot who is assessed in the status of an individual. The statement of the case relates to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot remain the property of the assessee on the execution of the trust deed. He held that the case was fully covered by the provisions of section 16(3)(b) of the Act and that the disputed incomes were rightly added in the case of the assessee. As regards the assessee's contention for reduction of the annual letting value of Faridkot House by Rs. 1,800 the Appellate Assistant Commissioner held that the houses kept for residential purposes have to be considered as one unit for computation of the annual letting value and in this view of the matter, reduction of Rs. 1,800 can be allowed only once. Feeling dissatisfied with the orders of the Appellate Assistant Commissioner, the assessee preferred appeals before the Income-tax Appellate Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent case, the minor child was not entitled to the corpus of the trust property and hence the provisions of section 16(3)(b) of the Act were clearly inapplicable. According to the learned counsel, this section would be applicable only in those cases where ultimately the corpus of the trust property was also transferred to the wife or the minor child as the case may be. In my opinion, this contention too of the learned counsel has no force. A similar argument was turned down by the Bombay High Court in the case of Commissioner of Income-tax v. Mahomed Yusuf Ismail. No contrary authority was cited before us by the learned counsel and no distinguishable feature was pointed out by the learned counsel for not following the decision in Mahomed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot the income received by the minor child. According to the assessee, the distinction was being drawn between the income of the bank as distinct from the income of the minor child. The argument of the learned counsel was that it was only the income of the bank under section 16(3)(b) of the Act which could be included in the income of the assessee for assessment. There seems to be no force in this argument. From the plain reading of section 16(3)(b) of the Act, it is clear that it relates to the income of the trust which is received for the benefit of the wife or minor child and it is this income which is to be included in the total income of the assessee. The use of the expression "so much of the income " also makes it clear that this provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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