1978 (8) TMI 33

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.... deposited a sum of Rs. 20,000 in his individual account with Messrs. Sohan Mal Hakam Chand and Company of Muzaffarnagar. With effect from 18th March, 1972, he impressed this amount with the character of HUF property. He became a partner in the aforesaid firm on September 4, 1972. In the previous year relevant to the assessment year 1973-74, he earned Rs. 1,000 as interest on the aforesaid amount ....

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....rom the firm, M/s. Sohan Mal Hakam Chand & Company, in the assessee's income for the assessment year 1973-74 under section 64(2) of the Income-tax Act, 1961 ? " After hearing counsel for the parties, we are of the opinion that the revenue authorities as also the Appellate Tribunal have been right in including the aforesaid two amounts in the income of the assessee under s. 64(2) of the Act. The....

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....mmencing on or after the 1st day of April, 1971,-- (a) the individual shall be deemed to have transferred the converted property, through the family, to the members of the family for being held by them jointly; (b) the income derived from the converted property or any part thereof, in so far as it is attributable to the interest of the individual in the property of the family, shall be deeme....

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....the Taxation Laws (Amend.) Act, 1970, with effect from 1st April, 1971. This sub-section supersedes the general law that where a coparcener throws his separate property into the common stock of the family and thereby converts it into joint family property, or where such property is subsequently partitioned among the family members including the coparcener's wife and minor children, there is no dir....