2007 (7) TMI 41

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....Department. 2 This appeal has been filed under section 260A of the Income-tax Act, 1961. The facts are that one Brij Mohan Gupta and one Anil Gupta were partners in a firm known as M/s. Auto Sales, which was dissolved on October 31, 1978. On the next day, i.e., November 1, 1978, a new partnership firm was constituted known as M/s. Auto Sales Properties. This new firm had three partners. Two of ....

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....Applying section 64(1)(iv), the income from the building was clubbed as income from house property with the income of the husbands. 5 This has been upheld by the Tribunal. The clubbing is being challenged on the ground that section 64(1)(iv) has been wrongly applied. 6 For the applicability of section 64(1)(iv), there are two conditions :     1. Assets should be transf....

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....ncome arising from such building which has been let out would be liable to be included in the income of the husbands, who have let out the property in favour of their wives at the inadequate or reduced rent of Rs. 4,000. The transfer in favour of the firm in which 94 per cent. share is held by the wives would be deemed to be a transfer "indirectly" to the wives. 11In the circumstances, this cou....