1978 (6) TMI 45 - HC - Income Tax

Summary

Issues involved:
1. Assessment of income from share and house properties in the status of an individual.
2. Entitlement to relief under section 80L in respect of gross dividend income.

Re: Question No. (1):
The assessment year in question is 1970-71. The court held that income from share in business and properties should be assessed as income of the Hindu Undivided Family (HUF) and not as income of the assessee as an individual, based on a previous judgment related to the assessment year 1969-70. Therefore, the first question is answered in the negative and in favor of the assessee.

Re: Question No. (2):
The assessee realized dividends from Indian companies and other sources during the relevant period. The assessee claimed relief under section 80L of the Income Tax Act, 1961, as the gross total income exceeded Rs. 3,000. The department argued that since the deduction under section 57(iii) exceeded the gross dividends, the assessee was not entitled to relief under section 80L. The court disagreed, stating that the relief under section 80L is based on gross total income and there is no requirement to consider the expenditure under section 57(iii) for claiming the relief. The court also noted that the aggregate amount of deduction under Chapter VI-A, including section 80L, should not exceed the gross total income of the assessee. Therefore, the second question is answered in the affirmative and in favor of the assessee.