1979 (9) TMI 28 - HC - Income Tax

Summary

Issues involved: Interpretation of provisions related to total income under section 23(2) and section 5 of the Income Tax Act, 1961.

Summary:
The High Court of Jammu and Kashmir addressed the issue of whether the total income of the owner under the proviso to section 23(2) includes income under section 64 of the Income Tax Act, 1961. The Court analyzed the definitions of "total income" and "gross total income" as per the Act. It was concluded that the total income of an owner would indeed include income of his minor child assessable under section 64. However, the Court clarified that "total income" and "gross total income" are not interchangeable, and the concept of each is distinct. Therefore, the Court answered the first question in the affirmative and the second question in the negative, stating that total income under section 5 is not equivalent to gross total income as defined in section 80B(5).

In conclusion, the Court upheld the Tribunal's decision regarding the inclusion of income under section 64 in the total income of the owner but disagreed with the notion that total income is the same as gross total income. The parties were directed to bear their own costs, and the counsel's fee was assessed at Rs. 150.

This judgment clarifies the scope of total income under the Income Tax Act, emphasizing the inclusion of income under section 64 in the total income of an owner while distinguishing it from gross total income as defined in the Act.