HUF income attribution fails where interest belongs to spouse's separate deposits, with factual verification sustaining exclusion.

Interest received by the assessee's wife in her individual capacity from deposits with firms could not be treated as income of the Hindu undivided family because the deposits were stated to be personal and not family assets. The appellate direction to verify the factual position and exclude the interest if the claim was correct was proper. The addition to the HUF's income was therefore not sustainable, and the deletion of the impugned addition was confirmed.

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Issues: Whether interest received by the assessee's wife in her individual capacity from deposits made with firms could be included in the income of the assessee Hindu undivided family, and whether the direction to verify the factual position before exclusion was sustainable.

Analysis: The interest arose from deposits stated to have been made by the individual in her personal capacity, and not from assets belonging to the Hindu undivided family. Such interest could not be assessed as the income of the family merely because the recipient was connected with the family. The appellate direction was only to verify the correctness of the factual claim and to exclude the interest if the claim was found correct, which was held to be proper.

Conclusion: The addition to the income of the Hindu undivided family was not sustainable, and the appellate direction for verification and exclusion was upheld.

Final Conclusion: The departmental appeal failed and the deletion of the impugned additions stood confirmed.

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