Clubbing of sons' house property income fails once they attain majority and repay loans from their own funds.

Income from shares of house property standing in the names of the assessee's sons, who had attained majority, could not be clubbed in the assessee's hands under the deeming provisions of the Income-tax Act. The sons had repaid the related loans from their own funds, and the repayment was within the appellate record. An arrangement that was justified while the sons were minors could not continue to attract clubbing once they became majors. Earlier acceptance of separate assessments also supported the settled position. The inclusion of the sons' share income in the assessee's hands was therefore deleted, and the alternative interest ground became infructuous.

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Issues: Whether the income from the shares of the house property standing in the names of the assessee's sons, who had attained majority, could be included in the assessee's hands under the deeming provisions of the Income-tax Act.

Analysis: The sons had repaid the loans from their own funds, and the record showed that the repayment was within the knowledge of the appellate authority. The arrangement made when the sons were minors was justified on the facts, but once they became major, the provision for clubbing of income applicable to minors could not continue to operate. The later acceptance of separate assessments in earlier years also supported the view that there was no basis for reopening the settled position for the year under appeal.

Conclusion: The inclusion of the sons' share income in the assessee's hands was not justified and was deleted. The alternative ground relating to interest became infructuous.

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