1986 (12) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....WAMY J.-The two questions referred are as follows: " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that there was transfer of funds by the assessee to his wife for the construction of house property as contemplated by section 64 of the Income-tax Act, 1961, or not ?  (2) If the answer to the above is affirmative, whether the Tri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed in the ratio of 1 : 3 and 3/4ths of the income in the hands of the assessee was assessed. On that basis, at the instance of the Revenue, the Tribunal has referred the above two questions. The first question, therefore, is, what is the amount which the assessee contributed in the construction of the house ? The Tribunal, as a fact-finding authority, has recorded a finding that the assessee co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....section, to the spouse of such individual from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration or in connection with an agreement to live apart. A reading of the above provision would indicate that in computing the total income of the individual, there shall be included all such income as arises directly or indirectly to the s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the assessee to purchase the plot, Rs. 34,500 was transferred by the assessee to his wife in the construction of the house and Rs. 52,000 was the amount which went into the construction from borrowings made in that regard. Section 64 of the Act has no application to outside borrowings. Therefore, the proportion in which the income derived from the property is to be apportioned is 10: 34.5 : 52....