Minor child trust income and single residential relief under income tax provisions were construed narrowly against the assessee.

Income settled for the benefit of a minor child is includible in the settlor's total income under section 16(3)(b) even where the child does not take the corpus and other beneficiaries also share the trust. The provision was read as covering income payable for the minor's benefit, and the relevant amount was included in the assessee's hands. The first proviso to section 9(2) was construed as allowing only one reduction for residential occupation, so no separate deduction could be claimed for each of two residential properties. The note states that both reference questions were answered against the assessee.

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Issues: (i) Whether income received by the assessee's minor daughter under the trust deed was includible in the assessee's total income under section 16(3)(b) of the Indian Income-tax Act, 1922. (ii) Whether the assessee was entitled to reduction of annual letting value of both residential properties by Rs. 1,800 each under the first proviso to section 9(2) of the Income-tax Act, 1922.

Issue (i): Whether income received by the assessee's minor daughter under the trust deed was includible in the assessee's total income under section 16(3)(b) of the Indian Income-tax Act, 1922.

Analysis: The trust settlement transferred property to trustees for the benefit of the settlor's children, including the minor daughter, and the income payable to her fell within the statutory language. The provision was not confined to cases where the minor child also took the corpus, nor was it excluded because other beneficiaries were also interested in the trust. The income received for the benefit of the minor child was the relevant income for inclusion in the assessee's hands.

Conclusion: The income was rightly included in the assessee's hands under section 16(3)(b); the answer is in favour of the Revenue.

Issue (ii): Whether the assessee was entitled to reduction of annual letting value of both residential properties by Rs. 1,800 each under the first proviso to section 9(2) of the Income-tax Act, 1922.

Analysis: The proviso was held to grant relief only once in respect of residential occupation by the assessee. Nothing in the language of the provision supported a separate deduction for each of the two houses occupied for residence. The two properties could not be treated as attracting multiple reductions under the same proviso.

Conclusion: The assessee was not entitled to a second reduction of Rs. 1,800; the answer is against the assessee.

Final Conclusion: Both reference questions were answered adversely to the assessee, and the Revenue succeeded on the substantive tax issues.

Ratio Decidendi: Section 16(3)(b) applies to income settled for the benefit of a minor child even if the child does not take the corpus and even if there are other beneficiaries, and the first proviso to section 9(2) allows only one reduction for residential occupation.

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