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Whether income from property, dividend, interest, and capital gains can be included in the total income of the assessee in the status of an individual for the assessment year 1962-63? Analysis: The judgment delivered by the High Court of Delhi pertained to a case where the Income-tax Appellate Tribunal referred a question regarding the inclusion of income from property, dividend, interest, and capital gains in the total income of the assessee for the assessment year 1962-63. The respondent-assessee, Dr. Gurbux Singh, claimed that income from property, dividends, and interest belonged to the Hindu Undivided Family (HUF) consisting of himself, his wife, and his son. The claim was based on the argument that these assets were acquired from the initial nucleus of a selling agency business. The Income Tax Officer (ITO) rejected the claim, citing lack of evidence and suspicion due to a substantial capital gain. However, the Appellate Tribunal accepted the claim, leading to the reference. The case involved tracing the origins of the assets in question back to the joint family nucleus. Dr. Gurbux Singh's business success was attributed to the initial selling agency business, which was established with the assistance of joint family funds. Various transactions involving family funds were identified, such as the sale of family jewelry and transfer of funds from the father to Dr. Gurbux Singh's bank account. These funds significantly contributed to the growth of the business, indicating a link between the assets and the joint family nucleus. The High Court analyzed the evidence presented and upheld the findings of the Appellate Tribunal. It was concluded that the business prosperity and acquisition of assets were primarily derived from the joint family funds, as evidenced by the substantial contributions made by the family towards the business. The Court rejected the argument that the assets were individual property, emphasizing the continuous investment of joint family funds into the business. Ultimately, the Court affirmed that the income from property, dividend, interest, and capital gains should be included in the total income of the assessee as part of the HUF, in line with the Tribunal's decision. The judgment favored the assessee, holding that the assets were traceable to the joint family nucleus, and dismissed the applicant's contentions.
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