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Inclusion of 50% income from jointly owned house property in the assessee's total income. Analysis: The appeal before the Appellate Tribunal ITAT BOMBAY-C revolved around the sole issue of whether Rs. 7,242, being 50% of the income from a house property, should be included in the individual assessee's total income. The assessee, an individual, and his wife jointly became members of a cooperative housing society, with the wife financing the flat from her own funds/loans. The construction of the flat began in 1975, and possession was given in 1978. The Assessing Officer of the wife accepted the income from the flat in her returns for previous years. However, the Income Tax Officer (ITO) for the assessee considered the investment made by the wife as jointly owned due to bank accounts being in joint names. Consequently, the ITO included 50% of the income from the property in the assessee's total income, leading to the addition of Rs. 7,242. Upon appeal, the assessee contended that since the wife's returns had been accepted, there was no justification for including the income in the assessee's hands. The CIT(A) upheld the addition, prompting the appeal to the Tribunal. The Tribunal noted that the Housing Society did not prohibit investments by non-members and that the wife's ownership of the flat had been accepted in previous assessments. The Tribunal observed that no action had been taken to disturb the wife's assessments. Therefore, the Tribunal concluded that the income from the flat should not be taxed in the assessee's hands. The Tribunal accepted the assessee's explanation that the flat belonged to the wife, and consequently, the Rs. 7,242 addition was deleted from the assessee's total income. In conclusion, the Tribunal allowed the appeal, ruling in favor of the assessee and deleting the disputed amount from the total income.
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