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TMI Blog1976 (4) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... ividend income of Rs. 9,666. It is not disputed that the wife s dividend income has to be clubbed with her husband s income under s. 64(iii). Before the ITO it was contended that before clubbing, 80-L relief is to be given to the dividend income derived by the wife. The ITO negatived the contention by holding that the dividend income of the wife should be first clubbed with the income of her husba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be included in the assessee s total income and the measure of income to be so included would be subject to the first proviso to s. 9(2) of the IT Act, 1922. That proviso prescribes that where property is in the occupation of the owner for purpose of his own residence, the annual value thereof shall first be determined in the same manner as if the property had been let out to a tenant and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction of s. 27(1) of the IT Act, 1961. Sec 27(1) creates a fiction that the spouse transferring house property without adequate consideration is deemed to be the owner of the property and the income from such property should be computed treating the transferor as the owner of the property. The result of this fictino is that when the husband transfers a house property to his wife without adequate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. Therefore, we have to determine the dividend income of the wife under the provisions of the IT Act by taking her as the owner of the shares. Sec. 80-L provides a mode of computation for determining the dividend income from shares by allowing a deduction upto Rs. 3,000. So, what the law determines as the dividend income of the wife is after allowing the relief under s. 80-L. We are unable to se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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