| Case ID |
0ad18258-9a47-43da-b9dd-76ae91d15450 |
| Body |
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| Case Number |
SPECIAL JURISDICTION CASE Nos. 100 TO 102 OF 1974 |
| Decision Date |
Jun 22, 1976 |
| Hearing Date |
|
| Decision |
The case involved the assessment years 1968-69 to 1970-71 concerning the income from house property standing in the name of the assessee's wife. The Income Tax Officer (ITO) found that the assessee had acquired a house in the name of his wife and treated the assessee as the real owner due to the failure of the assessee to prove his wife's capability to fund the purchase. The appellate authority upheld the ITO's assessment, and the Tribunal confirmed that the burden of proof lay on the assessee to demonstrate that his wife was genuinely the owner. The Tribunal concluded that the income from the house property was assessable in the hands of the assessee, as he failed to establish that his wife had sufficient assets to provide the consideration for the acquisition. The court held that the apparent owner was not the real owner, and thus the Tribunal's decision was upheld. |
| Summary |
In the landmark case before the Orissa High Court, the key issue revolved around the interpretation of Section 64 of the Income-tax Act, 1961, which pertains to the transfer of assets for the benefit of a spouse. The Income Tax Officer (ITO) scrutinized the ownership of property acquired in the name of Dhadi Sahu's wife. The case elucidates critical aspects of tax law, particularly concerning the assessment of income from properties held in a spouse's name. The ruling emphasized the burden of proof on the assessee to establish the legitimacy of ownership claims in tax matters, highlighting the need for clear evidence of financial capability. This case is pivotal for taxpayers and legal professionals navigating asset ownership and income tax assessments, particularly in family-owned property contexts. The decision reinforces the principle that the apparent ownership does not always equate to the real ownership in tax assessments, underscoring the importance of thorough documentation and proof in such cases. |
| Court |
Orissa High Court
|
| Entities Involved |
Not available
|
| Judges |
R.N. Misra,
N.K. Das
|
| Lawyers |
B.K. Mohanti
|
| Petitioners |
Dhadi Sahu
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1977 SLD 1314,
(1977) 109 ITR 337
|
| Other Citations |
CIT v. Durga Prasad More [1971] 82 ITR 540 (SC),
Ramkinkar Banerji v. CIT [1936] 4 ITR 108 (Pat.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
64
|