9911796707
TMI Blog2003 (4) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of the Income-tax Act, 1961, the Tribunal has referred the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the gift made by the assessee in favour of his three minor sons in the form of Hiba under the Mohammedan law attracts the provisions of section 64(1)(v) read with section 27(1) of the Income-tax Act, 1961, and, therefore, the rental income of the three minors from the properties gifted to them by the assessee was includible in the total income of the assessee for the three years under consideration?" The assessment years, in all, are 1983-84 to 1985-86, that the assessee-respondent has made oral declarations on January 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich has been transferred, should not be taxed in the hands of the assessee. Learned counsel further submits that the transfer is not in dispute and transfer or no transfer, it is obligatory on the parents to educate their children and once the transfer of property is made by the parents in favour of their children, any income arising out of the consequence of transfer of that property, income from that should not be taxed in the hands of the assessee transferor. The Tribunal has considered this aspect in detail in its order. The relevant paras. 9 to 13 of the order of the Tribunal read as under: "9. A 'Hiba' or gift under the Mohammedan law is a 'transfer of property, made immediately, and without any exchange' by one person to another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such individual, from assets transferred, directly or indirectly to the minor child by such individual otherwise than for adequate consideration.' 11. The argument that the provisions of section 64(1)(v) being in pari materia with the provisions of section 4(1)(vi) of the Wealth-tax Act, 1957, read with the proviso thereunder, no income from the gifted property should be considered as chargeable to tax in the hands of the assessee as these were not found by the Tribunal as chargeable to gift-tax on the ground of the purpose of the gift being ensuring education to the minors and as such not includible in the computation of the net wealth of the assessee, is not convincing. 12. It is not in dispute that the Tribunal in its order dated M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of, as the case may be, shall not be included in computing the net wealth of the individual'. 13. It may further be observed that in the instant case, gifts were made on January 1, 1982, and December 1, 1982, all much after 1st April, 1972, and the proviso to section 4(1)(vi) even if held to be applicable, would provide no help to the assessee." Considering the admitted facts that there was a transfer by the assessee to his sons, without any consideration of money, that property fetches the rental income, the Tribunal was absolutely justified in holding that the rental income from the property in question should be taxed in the hands of the assessee under section 64(1)(v) of the Act. If we accept the type of consideration with which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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