| Case ID |
fffe2a84-f21d-4b8e-9271-1c64916bba3d |
| Body |
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| Case Number |
IT REFERENCE No. 58 OF 1962 |
| Decision Date |
Mar 03, 1967 |
| Hearing Date |
Mar 03, 1967 |
| Decision |
The Bombay High Court held that the income arising from the property transferred in trust for the benefit of the assessee's nephew could not be included in the assessee's income under section 16(3)(a)(iv) or section 16(3)(b) of the Indian Income-tax Act, 1922. The decision was in favor of the assessee, as the court found that the provisions of section 16(3)(a)(iv) were inapplicable, and the case did not fall under section 16(3)(b) either. Consequently, the income was not liable to be included in the assessee's assessment. |
| Summary |
This landmark case involved the interpretation of the Income Tax Act, specifically section 64, concerning the transfer of assets for the benefit of a spouse or related individuals. The assessee, Framji H. Commissariat, and his brother created a trust for their nephew, transferring an undivided half share of their immovable property. The Income Tax Officer included the income from this property in the assessee's assessment for the year 1957-58, under section 16(3)(a)(iv) of the 1922 Act. However, the Tribunal held that the income was not liable to be included, as it did not arise from property transferred to the minor child but rather to a nephew. The Bombay High Court upheld the Tribunal's decision, affirming that the provisions of section 16(3)(a)(iv) did not apply. This case is significant in tax law, as it explores the boundaries of asset transfers within families and the implications for tax liability. Keywords: Income Tax Act, asset transfer, trust, nephew, tax liability, Bombay High Court, section 64, 1967 case law. |
| Court |
Bombay High Court
|
| Entities Involved |
Commissioner of INCOME TAX,
Framji H. Commissariat
|
| Judges |
KOTVAL, C.J.,
V.S. DESAI, J.
|
| Lawyers |
G.N. Joshi,
R.J. Joshi,
B.A. Palkhivala
|
| Petitioners |
Commissioner of INCOME TAX
|
| Respondents |
Framji H. Commissariat
|
| Citations |
1967 SLD 310,
(1967) 64 ITR 588
|
| Other Citations |
CIT v. C.M. Kothari [1963] 49 ITR 107 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
64
|